Marijuana industry cultivation and extraction solutions company Agrify Corp. consolidated its shares on a 20-to-1 basis in order to maintain its equity listing on the Nasdaq stock exchange.
The Massachusetts-based operator announced its board approved the share consolidation on July 3.
Agrify’s listing (AGFY) on the Nasdaq had been under threat after the exchange warned the company in January that its bid price had fallen below the required $1 minimum.
As a result of the share consolidation, the number of common Agrify shares outstanding has been reduced from roughly 32.5 million to about 1.6 million, according to a news release.
“Proportional adjustments also will be made to the exercise prices of Agrify’s outstanding stock options, warrants, shares held back in connection with acquisitions and to the number of shares issued and issuable under Agrify’s equity incentive plans,” the company said.
Other Nasdaq-listed cannabis industry players have recently turned to share consolidations to maintain their listings in the face of slumping share prices.
Fellow Canadian cannabis operator Organigram Holdings also plans to consolidate its shares in order to keep its Nasdaq listing, “reduce volatility and … enhance the marketability of the common shares to institutional investors,” the company announced in June.