Canopy Growth Announces Effective Date of Share Consolidation

Canopy Growth Corporation (NASDAQ:CGC) announced on Wednesday that its board of directors has approved the consolidation of its issued and outstanding common shares based on one post-consolidation common share for every ten pre-consolidation common shares.

The consolidation, which was previously approved by shareholders at their annual general and special meeting on Sept. 25, is being implemented to ensure that the company continues to comply with the listing requirements of the Nasdaq Global Select Market, the Ontario-based company said in a press release.

Now, the consolidation is subject to approval by the Toronto Stock Exchange (TSX) and is expected to become effective on Friday, Dec.15, with the post-consolidation common shares commencing trading on the TSX and the Nasdaq at market open on Wednesday, Dec. 20, subject to final confirmation from the TSX and the Nasdaq.

Technical Analysis
CGC stock may face resistance at the 50-day moving average of $0.6092 and support at the recent low of $0.545.

Waiting for a confirmation of a trend reversal before entering or exiting the market would be very crucial.