Cannabis Companies Delisted From Major Stock Exchanges In 2024: What Went Wrong?
Several cannabis companies faced financial challenges in 2024, with some being delisted or under threat of delisting from major stock exchanges due to financial instability, low values, compliance issues and a turbulent market.
This article looks into some of the key players that faced delisting, their strategies and outcomes from the ones that powered through to those that succumbed and faced restructuring.
Diverse Situations
Bright Green Corporation is one of the latest cannabis companies to delist in 2024. On September 19, 2024, trading of its shares was suspended from Nasdaq following the cancellation of its scheduled delist appeal hearing.
The company has struggled to meet the exchange’s compliance standards due to various operational and financial challenges.
Bright Green has been working to strengthen its financial position, with plans for a reverse stock split aimed at boosting shareholder value. Additionally, the company is exploring strategic alternatives, including partnerships and acquisitions. Despite these efforts, its delisting reflects broader issues within the cannabis industry, where companies are facing pressure to maintain market confidence and stock value.
Aurora Cannabis (NASDAQ:ACB), the Canadian giant and significant player in the global cannabis market, managed to avoid delisting by executing a 1:10 reverse stock split …