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Oct. 7, 2019, 9:45 a.m. EDT

Hexo's stock drops after CFO Monahan's 'abrupt' resignation

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By Tomi Kilgore

Shares of Hexo Corp. /zigman2/quotes/206508254/composite HEXO -7.09% dropped 6.2% in morning trading Monday, after the Canada-based cannabis company announced the resignation of its chief financial officer. The company said late Friday that Michael Monahan has decided to resign, about four months after he was named CFO, to spend more time with his family. MKM Partners analyst Bill Kirk said while he has no reason to doubt Monahan's motivations for leaving after such a short time, "we will be alert for other factors that could have precipitated this decision." Kirk said the "abrupt nature" of the announcement should pressure the stock. "However, as of yet, we see no cause for alarm and we reiterate our buy rating on Hexo shares," Kirk wrote in a note to clients. The company named Stephen Burwash, currently vice president of strategic finance, as its new CFO. Burwash was previously named interim CFO to replace Ed Chaplin, before Monahan was named CFO on May 28. The stock has tumbled 27% over the past three months, while the ETFMG Alternative Harvest ETF /zigman2/quotes/204332491/composite MJ -5.46% has plunged 36% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -3.35% has slipped 1.7%.

/zigman2/quotes/206508254/composite
US : U.S.: NYSE
$ 1.31
-0.10 -7.09%
Volume: 4.20M
Feb. 24, 2020 6:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$383.72 million
Rev. per Employee
N/A
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/zigman2/quotes/204332491/composite
US : U.S.: NYSE Arca
$ 15.58
-0.90 -5.46%
Volume: 1.11M
Feb. 24, 2020 6:30p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,225.89
-111.86 -3.35%
Volume: 2.75B
Feb. 24, 2020 5:04p
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