Cannabis operator Canopy to be booted off S&P/TSX Composite Index

Canadian-listed shares of cannabis company Canopy Growth Corp. will be removed from the S&P/TSX Composite Index, a market benchmark equivalent to the S&P 500 in the United States.

The move announced Friday by S&P Dow Jones Indices is the latest indicator of Canopy’s troubles.

The S&P/TSX Composite Index requires a minimum float-adjusted market capitalization for securities to be included, but Canopy’s market capitalization has declined precipitously as its share price has declined.

Canopy’s TSX-listed shares traded for nearly 55 Canadian dollars ($41) in February 2021, giving it a market capitalization exceeding CA$25 billion, according to The Globe and Mail newspaper.

Last Friday, however, the Smiths Falls, Ontario-based company’s Canadian shares closed at CA$1.14.

Canopy is now valued at less than CA$600 million.

The company’s removal from the S&P/TSX Composite Index takes effect before the Toronto Stock Exchange opens June 19.

In May, Canopy announced plans to refile some financial statements for its last fiscal year, joining a slew of other cannabis companies that have had to restate their quarterly filings.

The company announced significant layoffs and a major facility closure in February.

Last week Canopy announced a deal to acquire a 19.99% stake in Canadian cannabis edibles company Indiva.

Canopy’s shares trade on the TSX as WEED and on the Nasdaq as CGC.

Source: https://mjbizdaily.com/cannabis-company-canopy-growth-to-be-booted-off-sp-tsx-composite-index/