Canopy: Shares Plummet as Reverse Stock-Split Surprisingly Will Cancel Any Fractional Shares

A reverse stock-split has been coming for no-moat Canopy, as shares have been trading below $1 on its Nasdaq listing since May, excluding a temporary recovery in September. Nasdaq’s listing rules require shares to trade over $1, so deficient companies have previously executed reverse stock-splits to drive their price higher by consolidating outstanding shares. This has no effect on the total value of the company and typically wouldn’t affect an investor’s holding.