Canadian cannabis company Canopy Growth Corporation (TSX:WEED, NYSE:CGC) is set to face another blow as its shares are removed from the S&P/TSX Composite Index, Canada's equivalent of the S&P 500.
The decision, announced on Friday by S&P Dow Jones Indices, underscores Canopy's ongoing struggles.
The S&P/TSX Composite Index imposes a requirement for securities to maintain a minimum float-adjusted market capitalization for inclusion. Unfortunately for Canopy, its market capitalization has experienced a steep decline alongside its share price.
In February 2021, Canopy's TSX-listed shares traded at a substantial CA$55 ($41), resulting in a market capitalization exceeding C$25 billion, as reported by The Globe and Mail. However, last Friday saw the Ontario-based company's Canadian shares close at a mere C$1.14, slashing its valuation to less than C$600 million.
Canopy's removal from the S&P/TSX Composite Index will be effective before the opening of the Toronto Stock Exchange on June 19th, MJBiz reported.
Canopy recently announced plans to refile financial statements for the previous fiscal year, following the footsteps of several other cannabis companies facing the need to restate their quarterly filings. The company had also initiated significant layoffs and the closure of a major facility back in February.
Canopy's shares trade on the TSX as WEED and on the Nasdaq as CGC.
Contact Angela at angela@proactiveinvestors.com
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