Why Are Marijuana Companies Turning to Share Consolidations?

In recent months, marijuana companies have opted for share consolidations to comply with Nasdaq regulations while grappling with low stock valuations. Thus, consolidating shares can help cannabis companies improve their market standing and maintain a steady financial trajectory while staying within acceptable regulatory bounds.Comparing Share Consolidations to Alternative MeasuresCannabis companies are exploring various methods to ensure Nasdaq compliance, including measures alongside the popular share consolidation tactic. The move shows how even an industry powerhouse is implementing this tactic to ensure regulatory conformity.Why Are Cannabis Companies Consolidating Shares?There are several reasons why cannabis companies may choose share consolidations, including maintaining shareholder support, increasing investor visibility, and ensuring consistent access to capital markets. July 2022 saw Massachusetts-based Agrify Corp., a company associated with the marijuana industry, undergo a share consolidation to maintain its place on Nasdaq. This strategic move is gaining popularity within the cannabis industry as businesses seek ways to mitigate risks and keep their listings on a prestigious exchange like Nasdaq.A Growing Trend: Leafly and Other Cannabis Companies in 2022The trend of share consolidations among marijuana-related firms has grown steadily over the past year.