June 17, 2020, 7:47 a.m. EDT

Hexo's stock falls after $25.5 million stock offering program announced

The U.S.-listed shares of Hexo Corp. (NYS:HEXO) sank 8.0% in premarket trading Wednesday, after the Canada-based consumer packaged goods cannabis company announced a C$34.5 million ($25.5 million) at-the-market stock offering program. The program represents about 6.7% of the company's market capitalization as of Tuesday's stock closing prices. The program allows the company to issue the new shares, with sales executed through the Toronto Stock Exchange or the New York Stock Exchange, or other exchanges the shares are traded. The program's agents are AltaCorp Capital Inc. in Canada and Oppenheimer & Co. Inc. in the U.S. The U.S.-listed stock has more than doubled (up 107.7%) over the past three months through Tuesday, while the Cannabis ETF (PSE:THCX) has climbed 60.2% and the S&P 500 (S&P:SPX) has rallied 23.6%.

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