Hexo stock plunges nearly 30% as Ottawa cannabis firm issues US$140M worth of new units


A lesson for the Tilray MedMen deal as Medmen is about to issue  a lot of new stock ? The Ottowa Business Jnl reports Hexo’s shares plunged nearly 30 per cent Friday after the Ottawa-based cannabis producer announced it was issuing US$140 million worth of new units that consist of shares and future purchase warrants. Hexo said it was issuing 47.45 million units at a price of US$2.95 per unit. A.G.P./Alliance Global Partners and Cantor Fitzgerald Canada Corporation are acting as lead underwriters and joint bookrunners for the offering, while ATB Capital Markets is acting as co-manager. Hexo has been issuing new shares at a steady clip as it seeks to finance its ambitious expansion plans. In the past two and a half years, its total number of listed shares has tripled to more than 152 million, with each new offering tending to dilute the value of existing shares. Read more. https://www.obj.ca/article/local/hexo-stock-plunges-nearly-30-ottawa-cannabis-firm-issues-us140m-worth-new-units

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Source : Hexo stock plunges nearly 30% as Ottawa cannabis firm issues US0M worth of new units

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