Why Canopy Growth Stock Is Getting Smoked Today
Canopy Growth's (NASDAQ: CGC) share price is getting hit hard in Wednesday's trading. The marijuana stock was down 23.2% as of 10:45 a.m. ET, according to data from S&P Global Market Intelligence.
Canopy Growth published a press release before the market opened today announcing that it will carry out a 10-for-1 reverse stock split. The move will allow the company's stock to continue trading on the stock exchange, but it seems some investors are worried that the reverse stock split is a sign that the business and its share price could be on a potentially irreversible long-term slide.
According to Canopy's press release, the 10-for-1 reverse stock split is scheduled to become effective prior the market's open on Dec. 20. The move should push the company's share price above the $1 threshold needed to continue trading on the Nasdaq stock exchange.
Source Fool.com
