Canopy Growth Corp (NASDAQ:CGC) shares are trading lower Wednesday after the company announced the effective date for a share consolidation.
What Happened: Canopy Growth said its board approved a share consolidation on a 1 for 10 basis in an effort to regain compliance with Nasdaq listing requirements. The consolidation was approved by shareholders at the annual meeting on Sept. 25.
The consolidation is expected to become effective on Dec. 15. Shareholders are set to receive one post-consolidation share for every 10 pre-consolidation shares held. The post-consolidation shares will commence trading at the market open on Dec. 20.
“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,” said Judy Hong, chief financial officer of Canopy Growth.
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CGC Price Action: Canopy Growth shares were down 12.3% at 60 cents at the time of publication, according to Benzinga Pro.
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