Shares of Canopy Growth (TSX:WEED) fell last week as the company announced it would be consolidating its shares in a reverse stock split. Shareholders will see their shares consolidate on a 1-for-10 basis, Canopy Growth stock stated. And investors were not impressed.
What happened
The 1-for-10 consolidation came into effect last week as the company’s share price continued to trade below $1 per share. It has been quite the wild ride since hitting all-time highs near $70 per share. And with shares under that $1 mark, the company risked being taken off the Nasdaq.
Investors were certainly not impressed with the decision, trying to get out before the consolidation happened. Shares dropped 25% from $1.06 during Monday highs to about $0.75 per share after the news came out on Wednesday. Shares then remained stable before consolidating later on in the week.
But was it the right move? Canopy Growth stock has certainly been making a lot…
