Cannabis company Hexo Corp. announced a plan to consolidate its shares in an effort to regain compliance with the US$1 minimum share price continued listing standard of the New York Stock Exchange.
Shares in the company closed at 72 cents US on the New York Stock Exchange on Thursday.
Hexo says avoiding a delisting of its shares from the NYSE is in the best interests of the company and its shareholders.
Under the proposal, shareholders will receive one post-consolidation share for every eight shares they hold.
Hexo says it will not issue fractional post-consolidation shares and that the number of post-consolidation shares issued to shareholders will be rounded up or down to the nearest whole number of shares.
The proposal needs shareholder approval at a meeting set for Dec. 11.
The Canadian Press