Organigram Holdings OGI, a major licensed producer of cannabis and cannabis-derived products in Canada, announced plans to consolidate its shares on a 4-to-1 basis.
The move is aimed at maintaining the company's U.S. equity listing on the NASDAQ, which had warned Organigram earlier this year for falling below the exchange's minimum bid price requirement.
NASDAQ Compliance At Stake
Facing a potential delisting, Organigram's shares have continued to decline in value, opening at a meager $0.40 on the NASDAQ recently. By consolidating its shares, the company hopes to reduce volatility and attract institutional investors.
The share consolidation, scheduled for July 7, will not only impact Organigram's listing but also its shares on the Toronto Stock Exchange (TSX). Approval from both exchanges is required for the consolidation to proceed.
“The Share Consolidation is being implemented to ensure the Company continues to comply with Nasdaq listing requirements, reduce volatility, and enhance the marketability of the common shares to institutional investors,” stated the company in a press release.
Attract Institutional Investors And Enhance Marketability
Trading as "OGI" on both the NASDAQ and the TSX, Organigram aims to enhance its marketability and ensure compliance with listing requirements through this share consolidation effort.
Organigram reported a net loss of CAD $7.5 million ($5.7 million) for the quarter that ended February 2, along with net revenue of CAD $39.5 million, reported MJBizDaily.
Hexo Corp.HITI and Aurora Cannabis ACB, along with other cannabis companies, have undergone share consolidations to meet the NASDAQ's minimum bid price and maintain their listings, while Canopy Growth Corp.CGC, another Canadian cultivator, was recently removed from the benchmark S&P/TSX Composite Index.
Related News
- Organigram To Enter German Cannabis Market Via Sanity Group
- Organigram Shares Trading Lower On Q2 FY23 Revenue Growth Of 24% YoY
Photo by Michał Parzuchowski on Unsplash.
Edge Rankings
Price Trend
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Cannabis is evolving—don’t get left behind!
Curious about what’s next for the industry and how to stay ahead in today’s competitive market?
Join top executives, investors, and industry leaders at the Benzinga Cannabis Capital Conference in Chicago on June 9-10. Dive deep into market-shaping strategies, investment trends, and brand-building insights that will define the future of cannabis.
Secure your spot now before prices go up—this is where the biggest deals and connections happen!