Canopy Growth Receives Nasdaq Sub-$1 Deficiency Notice, Reverse Split Vote Pending

Canopy Growth, headquartered in Smiths Falls, Ontario, is one of Canada's largest licensed cannabis producers, selling adult-use and medical cannabis across Canada and Europe under brands including Tweed, 7ACRES, DOJA, and MTL Cannabis, alongside the Storz & Bickel vaporizer business. The company trades on both the Nasdaq Global Select Market and the Toronto Stock Exchange under the tickers CGC and WEED respectively, with a market capitalization of approximately $311 million.

Financially, the company has been working through a multi-year restructuring. Going-concern doubt that existed as recently as fiscal year 2025 was formally resolved as of the quarter ended September 30, 2025, when cash and cash equivalents of C$298 million exceeded total debt. Quarterly net revenue has grown from roughly C$67 million in Q2 FY2026 to C$81 million in Q1 FY2027, and management has set a target of positive Adjusted EBITDA during fiscal year 2027. Nonetheless, the company continues to burn cash from operations — free cash outflow widened to C$25.7 million in the quarter ended June 30, 2026 — and carries an accumulated deficit of approximately C$11.15 billion.

The past year has brought compounding disclosure events. In May 2026, the audit committee concluded that financial statements for fiscal years 2024 and 2025, plus eight quarterly periods, could no longer be relied upon because of non-cash errors in the classification of certain share-settled warrants. In August 2026, auditor PKF O'Connor Davies resigned, citing the firm's strategic decision to exit the cannabis sector; the company reported no disagreements with the departing firm and immediately engaged MNP LLP as its replacement.