Canopy Growth shareholders approve potential reverse stock split

Canopy Growth shareholders have approved a proposal that allows the company’s board of directors to implement a reverse stock split. The authorization permits a consolidation ratio ranging from 1-for-5 to 1-for-15 for both common and exchangeable shares.

The move is intended to help the cannabis company regain compliance with Nasdaq’s minimum share price requirements. Nasdaq previously notified Canopy Growth that it had fallen out of compliance after its shares traded below $1 for 30 consecutive business days. The company has until April 12, 2027, to resolve the deficiency by maintaining a closing price of at least $1 for 10 consecutive business days.

According to an SEC filing, the resolution received 121,567,723 votes in favor, 28,460,796 against, and 4,809,378 abstentions. While the shareholders have approved the authority to consolidate, the board retains sole discretion over the exact ratio and the timing of the implementation, which must occur before September 25, 2027.