Aurora Cannabis (NYSE:ACB) has undergone a reverse stock split that has it trading on the New York Stock Exchange (NYSE) and Toronto Stock Exchange (TSX).
Here’s what ACB investors need to know about the Aurora Cannabis reverse stock split.
- The reverse stock split for ACB shares was 12 to 1.
- This has its 1,313,494,990 outstanding shares prior to the change consolidating down to 109,457,915 shares.
- Aurora Cannabis notes that it won’t allow for shareholders to have fractional shares of ACB stock.
- Instead, the company rounded the shares up or down to the closest whole number depending on the circumstances.
- It went into effect today and allows the stock to be traded on the NYSE and TSX.
- This has it trading on both exchanges under the ACB stock ticker.
- The reason behind the reverse stock split was to meet trading standards on the NYSE.
- The NYSE doesn’t allow shares that remain below $1 for 30 days.
- However, it’s worth pointing out that this wouldn’t affect its trading status on the TSX.
- The Aurora Cannabis reverse stock split was initially announced by the company back in April.
- It was included in its list of changes to strengthen its business and better help it weather the novel coronavirus pandemic.
Michael Singer, executive chairman and interim CEO of Aurora Cannabis, said this during the initial update.
“Our focus today continues to be on financial discipline across the entire organization. We are taking appropriate actions to strengthen our cash position and maintain financial flexibility as we navigate through the current environment.”
ACB stock was down 8% as of Monday afternoon.