Canopy Growth Corporation (TSX:WEED, NYSE:CGC) shares plunged more than 20% after the cannabis company said it would be conducting a 1-for-10 consolidation of its shares to regain compliance with the Nasdaq minimum bid price.
The consolidation was approved by the company's shareholders at its annual general and special meeting of shareholders held on September 25, 2023, Canopy Growth said.
Subject to the approval of the Toronto Stock Exchange, it will be effective on Friday, December 15, 2023.
Canopy Growth's post-consolidated shares are expected to commence trading at the market open on Monday, December 2023.
No fractional shares will be issued, with any fractional shares from the consolidation to be considered tendered to the company for cancellation for no consideration, the company said.
“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,” Canopy Growth chief financial officer Judy Hong said in a statement.
Canopy Growth stock was down 20.4% at US$0.55 on Wednesday afternoon.