Shares of cannabis products provider Canopy Growth (NASDAQ:CGC) are down nearly 31% at the time of writing today after it disclosed the receipt of a non-compliance letter from Nasdaq on July 11.
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The company is in non-compliance with Nasdaq’s closing bid price requirement of $1 per share and has until January 8, 2024, to regain compliance with the rule. Canopy now plans to monitor the closing bid price of its shares on Nasdaq and evaluate options to resolve the deficiency including a proposed reverse stock split.
In another development, Canopy has entered into multiple agreements with certain of its lenders to pare down its debt by nearly $437 million over the coming six months. The move is expected to lower its annual interest costs by about $20 million to $30 million.
Additionally, while maneuvering to shore up its balance sheet, the company is also undertaking a business transformation plan to boost profitability. Despite these recent moves here’s why investor sentiment in the stock remains low at present.
Overall, the Street has a $0.78 consensus price target on Canopy Growth alongside a Moderate Sell consensus rating.
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