Canopy Growth (TSX: WEED) is set to seek approval for a share consolidation, following the receipt of a notice from the Nasdaq Stock Market that its shares have failed to meet a minimum bid requirement.
Canopy has indicated that following its failure to meet the minimum bid requirement of $1.00 for a period of 30 days, it has failed to meet a listing rule on the exchange. The company has 180 calendar days from the date of the letter to come into compliance with the minimum bid requirement.
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In an effort to satisfy the requirement, the company has indicated that it will include a proposal for a share consolidation at its upcoming annual general and special meeting of shareholders. The proposal will outline a consolidation within a range of one post-consolidation share for every 5 to 15 pre-consolidation common shares, with the final ratio to be determined by the firms board of directors.
The consolidation, if approved, would have until September 25, 2024 to be placed into effect, as per the proposal.
The meeting of shareholders is currently slated to take place September 25, 2023.
Canopy’s proposal for a share consolidation follows the announcement earlier this morning that it would be issuing up to 90.4 million additional common shares as part of a debt settlement that will also see the issuance of new convertible debentures and certain cash payments.
Canopy Growth last traded at $0.85 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.
