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Dec. 26, 2019, 7:48 a.m. EST

Canadian cannabis company Hexo shares slide 13% premarket after news of $25 million stock offering

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By Ciara Linnane

U.S.-listed shares of Canadian cannabis company Hexo Corp. /zigman2/quotes/206508254/composite HEXO +2.11% /zigman2/quotes/200008967/delayed CA:HEXO +1.16% slid 13% in premarket trade Thursday, after the company announced a $25 million registered direct share offering. The company has agreed to sell 14.9 million shares priced at $1.67 each, a discount over its closing price Tuesday of $1.96. It has further agreed to issue warrants to purchase 7.5 million common shares with an exercise price of $2.45 a share. Proceeds of the deal will be used for working capital and other general corporate purposes, including financing research and development. Shares have fallen 43% in 2019, while the ETFMG Alternative Harvest ETF /zigman2/quotes/204332491/composite MJ +0.48% has fallen 31% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.60% has gained 29%.

/zigman2/quotes/206508254/composite
US : U.S.: NYSE
$ 0.66
+0.01 +2.11%
Volume: 3.93M
Sept. 25, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$265.14 million
Rev. per Employee
N/A
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/zigman2/quotes/200008967/delayed
CA : Canada: Toronto
$ 0.87
+0.01 +1.16%
Volume: 1.28M
Sept. 25, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$355.49 million
Rev. per Employee
N/A
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/zigman2/quotes/204332491/composite
US : U.S.: NYSE Arca
$ 10.42
+0.05 +0.48%
Volume: 500,005
Sept. 25, 2020 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,298.46
+51.87 +1.60%
Volume: 2.18B
Sept. 25, 2020 5:06p
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