Adam Jackson
Canopy Growth Corp. (TSX: WEED) (Nasdaq: CGC) lost nearly 14% premarket Wednesday after announcing a 1-for-10 share consolidation to comply with Nasdaq’s minimum bid price requirement.
The decision, approved by the company’s shareholders on Sept. 25, is expected to increase the per-share price by Friday, with each ten shares being combined into one in order to meet the Nasdaq’s listing standards.
The consolidated shares are set to begin trading on Dec. 20 on both the Toronto Stock Exchange and Nasdaq, retaining their current ticker symbols. Fractional shares resulting from the process will be canceled without compensation.
“By implementing this share consolidation, Canopy Growth expects to regain compliance with the Nasdaq’s bid requirement and further support the marketability of the Company’s shares,” CFO Judy Hong said in a statement Wednesday.
The company has had a rough year, but its luck could be turning around after months of cost cuts and other measures meant to mitigate losses and keep it afloat through tough times.
