Canopy Growth Corporation has received a formal notice from Nasdaq that it no longer meets the stock exchange’s minimum share price requirement, giving the marijuana company until April 12, 2027, to regain compliance as shareholders prepare to vote on a potential reverse stock split this Friday.
According to an October 16 filing with the U.S. Securities and Exchange Commission, Canopy Growth received the notice on October 14 after its common shares traded below $1 for 30 consecutive business days. The company trades on the Nasdaq Global Select Market under the ticker symbol CGC.
Under Nasdaq rules, Canopy Growth has 180 calendar days to restore compliance. To satisfy the requirement, its shares must close at $1 or higher for at least 10 consecutive business days before the April deadline.
The notice comes ahead of a shareholder meeting scheduled for October 23, when investors will consider authorizing a reverse stock split. The proposal would allow Canopy Growth’s board of directors to consolidate shares at a ratio ranging from one new share for every five existing shares to one new share for every 15 existing shares.
A reverse stock split reduces the number of outstanding shares while proportionally increasing the price per share, potentially allowing a company to satisfy minimum listing requirements without increasing its overall market capitalization. Canopy Growth’s board would have discretion over the final ratio if shareholders approve the proposal.
The shareholder meeting was originally scheduled for September 25 but was adjourned because the company failed to establish a quorum. The meeting is now scheduled to reconvene Friday.
If Canopy Growth pursues a reverse stock split to restore Nasdaq compliance, the transaction must be completed at least 10 business days before the April 12 deadline.
Should the company fail to regain compliance during the initial 180-day period, it could qualify for another 180 days by transferring its listing to the Nasdaq Capital Market, provided it satisfies additional listing requirements. Failure to meet those conditions or restore compliance could result in a delisting determination, which the company would have an opportunity to appeal.
The Nasdaq notice does not immediately affect trading of Canopy Growth shares. Its separate listing on the Toronto Stock Exchange also remains unaffected.
Canopy Growth said it will continue monitoring its share price and evaluating options to restore compliance. The Canadian marijuana company has faced sustained pressure on its stock valuation, with the latest Nasdaq notification adding urgency to its upcoming shareholder vote.
