After a continued spiral in the capital markets, Canopy Growth (TSX: WEED) has confirmed that it will be conducting a reverse split, also known as a share consolidation, in an effort to maintain its Nasdaq listing.
The company, which originally proposed up to a 1 for 15 split back in July, has seen its board of directors approve of a consolidation. The consolidation will occur on a 1 for 10 basis, with shareholders receiving one post-consolidation share for every ten pre-consolidation share held.
The consolidation is scheduled to take effect on December 15, will shares to begin trading December 20 on a post-consolidation basis.
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The consolidation follows a series of failures by the company as of late, including the sell off of its BioSteel assets at a significant loss, its second quarter revenue tumbling 36%, and the inability to entice its major shareholder, Constellation Brands, to invest further into the company. It also follows the sale of its flagship Hershey Drive facility as the company looks to cut costs wherever possible.
Canopy Growth last traded at $0.93 on the TSX.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
