Canopy Growth Corp. Faces Delisting from S&P/TSX Composite Index

LOS ANGELES– Canopy Growth Corp., a Canadian cannabis company, is set to be removed from the S&P/TSX Composite Index, a key market benchmark similar to the S&P 500 in the United States. The decision, announced by S&P Dow Jones Indices on Friday, underscores the ongoing challenges faced by Canopy Growth.

Inclusion in the S&P/TSX Composite Index requires a minimum float-adjusted market capitalization, which Canopy Growth no longer meets due to a significant decline in its share price. The company’s market capitalization has experienced a steep decline since its TSX-listed shares traded at nearly 55 Canadian dollars ($41) in February 2021, with a market capitalization exceeding CA$25 billion, as reported by The Globe and Mail newspaper. In contrast, the company’s Canadian shares closed at CA$1.14 last Friday, resulting in a market valuation of less than CA$600 million.

Canopy Growth’s removal from the S&P/TSX Composite Index will take effect before the opening of the Toronto Stock Exchange on June 19. This development adds to a series of challenges the company has faced recently, including the need to refile financial statements for its previous fiscal year, a step taken by several other cannabis companies dealing with restated quarterly filings. Moreover, Canopy Growth announced significant layoffs and the closure of a major facility in February.

In an attempt to revitalize its position, Canopy Growth recently unveiled a deal to acquire a 19.99% stake in Indiva, a Canadian cannabis edibles company. Canopy Growth’s shares are traded on the TSX under the symbol “WEED” and on the Nasdaq as “CGC.”

The company will now need to reassess its strategies and implement measures to regain investor confidence and strengthen its market position amidst the challenges facing the cannabis industry. The forthcoming months will be critical for Canopy Growth as it navigates these obstacles and seeks to regain its footing in the market.