In a strategic move aimed at ensuring continued compliance with the listing requirements of the Nasdaq Global Select Market, Canopy Growth Corporation, a prominent North American cannabis and consumer packaged goods company, announced today that its board of directors has given the green light to the consolidation of the Company’s issued and outstanding common shares. The share consolidation of Canopy Growth will be carried out on the basis of one (1) post-Consolidation Common Share for every ten (10) pre-Consolidation Common Shares.
The decision to consolidate was endorsed by the Company’s shareholders during the annual general and special meeting held on September 25, 2023. Following the announcement, the stock of Canopy Growth experienced a decline in Wednesday morning trading.
At the time of this publication, Canopy Growth Corp stock (CGC) has witnessed a decline.
Canopy Growth Corp
Current Price: $0.51
Change : -0.17
Change (%): (-25.53%)
Volume: 58.8M
Source: Tomorrow Events Market Data
The consolidation, subject to approval by the Toronto Stock Exchange, is slated to take effect on December 15, 2023. The post-Consolidation Common Shares are expected to commence trading on both the TSX and the Nasdaq at market open on December 20, 2023, pending final confirmation from the TSX and the Nasdaq. It is worth noting that no fractional Common Shares will be issued as part of the consolidation. Any fractional Common Shares resulting from the process will be deemed tendered for cancellation by their registered owner without any compensation.
Judy Hong, Chief Financial Officer of Canopy Growth, expressed confidence in the move, stating, “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.”
Upon completion of the consolidation, it is anticipated that the post-Consolidation Common Shares will continue to trade on the TSX under the symbol “WEED” and on the Nasdaq under the symbol “CGC,” albeit with a new CUSIP number: 138035704.
Shareholders of record as of the Effective Date will receive instructions for the exchange of their Common Shares through a letter of transmittal from Odyssey Trust Company, the transfer agent for the Common Shares. This process is expected to be initiated as soon as practicable following the Effective Date.
Investors and market analysts will be closely monitoring the developments surrounding Canopy Growth Corporation as it navigates through this strategic move, aligning its corporate structure with the evolving dynamics of the financial markets.
