Canopy Growth Corporation (TSX:WEED) (NASDAQ:CGC) announced on Wednesday that its board of directors has approved the consolidation of its issued and outstanding common shares based on one post-consolidation common share for every ten pre-consolidation common shares.
The consolidation, which was previously approved by shareholders at their annual general and special meeting on Sept. 25, is being implemented to ensure that the company continues to comply with the listing requirements of the Nasdaq Global Select Market, the Ontario-based company said in a press release.
Now, the consolidation is subject to approval by the Toronto Stock Exchange (TSX) and is expected to become effective on Friday, Dec.15, with the post-consolidation common shares commencing trading on the TSX and the Nasdaq at market open on Wednesday, Dec. 20, subject to final confirmation from the TSX and the Nasdaq.
"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," Judy Hong, the company's CFO said.
It is anticipated that upon completion of the consolidation, the post-consolidation common shares will continue to trade on the TSX under the symbol "WEED" and on the Nasdaq under the symbol "CGC."
Background
Canopy received a non-compliance notice from the NASDAQ due to its shares' closing bid price remaining below $1 per share for 30 consecutive business days in July. However, the company was granted 180 days to regain compliance.
Canopy Growth found a bottom near the 38-cent mark throughout July and August before rebounding in September.
The company's stock traded 10.2321% lower at $0.615 per share during the pre-market session on Wednesday morning.
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