In May, the most popular pot stock among millennials, Aurora Cannabis (NASDAQ:ACB), was forced to enact a 1-for-12 reverse split to avoid being delisted from the New York Stock Exchange (NYSE). ... A reverse split was an easy way for the company to remedy its insufficient share price.

When did ACB do a reverse split?

All of these struggles pushed Aurora's share price down by more than 90% from its mid-March 2019 high and led management to declare a 1-for-12 reverse split, which was effected on May 11, 2020.

Is a reverse split good for investors?

A reverse stock split could raise the share price enough to continue trading on the exchange. ... If a company's share price is too low, it's possible investors may steer clear of the stock out of fear that it's a bad buy; there may be a perception that the low price reflects a struggling or unproven company.