Canopy Growth Corp. is set to become the latest cannabis producer to consolidate its shares to maintain its listing on the Nasdaq exchange.
The Canadian company’s board approved the share-consolidation plan on the basis of one post-consolidation common share for every 10 pre-consolidation shares.
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The consolidation was approved at Canopy’s annual general meeting in September.
The move will bring the Ontario-based producer’s share price back into compliance with Nasdaq listing requirements, which require issuers to maintain a minimum bid price of at least $1 per share.
Canopy’s shares closed Monday at 69 cents on the Nasdaq.
If a stock trades below that $1 minimum for 30 consecutive business days, the Nasdaq issues a warning and grants a 180-day period for the company to regain compliance.
Nasdaq-listed cannabis companies that have completed share consolidations in the past include:
Canopy’s consolidation plan is expected to become effective
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