Organigram Holdings (NASDAQ:OGI), a major licensed producer of cannabis and cannabis-derived products in Canada, announced plans to consolidate its shares on a 4-to-1 basis.

The move is aimed at maintaining the company's U.S. equity listing on the NASDAQ, which had warned Organigram earlier this year for falling below the exchange's minimum bid price requirement.

NASDAQ Compliance At Stake

Facing a potential delisting, Organigram's shares have continued to decline in value, opening at a meager $0.40 on the NASDAQ recently. By consolidating its shares, the company hopes to reduce volatility and attract institutional investors.

The share consolidation, scheduled for July 7, will not only impact Organigram's listing but also its shares on the Toronto Stock Exchange (TSX). Approval from both exchanges is required for the consolidation to proceed.

“The Share Consolidation is being implemented to ensure the Company continues to comply with Nasdaq listing requirements, reduce volatility, and enhance the marketability of the common shares to institutional investors,” stated the company in a press release.

Attract Institutional Investors And Enhance Marketability

Trading as "OGI" on both the NASDAQ and the TSX, Organigram aims to enhance its marketability and ensure compliance with listing requirements through this share consolidation effort.

Organigram reported a net loss of CAD $7.5 million ($5.7 million) for the quarter that ended February 2, along with net revenue of CAD $39.5 million, reported MJBizDaily.

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Photo by Michał Parzuchowski on Unsplash.