Canadian cannabis retailer High Tide (OTCMKTS:HITIF) is one step closer to a Nasdaq Exchange listing after the Toronto-traded company consolidated its shares and drastically reduced the number of outstanding common shares.
Similar to a reverse split, companies typically consolidate their shares to comply with exchange rules on share price minimums. For example, fellow Canadian marijuana stock Hexo (NYSE:HEXO) in October 2020 proposed a 8:1 consolidation after receiving a warning from the New York Stock Exchange. This came after the HEXO stock price fell below $1 a piece for a consecutive 30-day trading period.
“Today’s news represents a significant milestone towards High Tide becoming the first major cannabis retailer anywhere in the world to be listed on Nasdaq, making our shares more accessible to a larger audience of both retail and institutional investors, and increasing our appeal to potential M&A targets,” said Raj Grover, president and CEO of High Tide.
“The announced share consolidation, coupled with other recent progress in our application, gives us confidence that we remain on course to meet the listing standards and begin trading on Nasdaq by the end of this month,” he added.
HITIF Stock Gaining Momentum With Acquisitions
Once HITIF stock starts its Nasdaq trading, it will have some momentum and tailwinds provided by recent acquisitions both in its home country and in the U.S.
Earlier this week, High Tide moved to expand its cannabis consumption product offerings with the acquisition of a majority (80%) stake in Fab Nutrition, a leading online retailer of hemp-derived CBD products.
In late April, HITIF expanded its Canadian retail network with the purchase of a Toronto Canna Cabana store, one of the original 25 cannabis retail stores operating in the province. To date, High Tide has earned over $1 million in royalties from the store.
Last month, InvestorPlace’s Joel Baglole listed HITIF stock among his “7 Reddit Penny Stocks Ready To Get High on Cannabis.” The shares were among a roster of stocks of obscure cannabis companies nobody had heard but had seen jumps of 300%, 400% and more as investors who frequent investing subreddits bought shares at a manic pace.
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On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News, McKinsey & Co. and McDonald & Company Investments.