Why HEXO Stock Dropped Friday
Shares of HEXO (NYSE: HEXO) dropped on Friday after the company filed to potentially do a significant capital raise. The stock has gained 50% year to date, and is 175% higher than one year ago. But shares declined on the news today, trading down as much as 8%, and settling down about 5% as of 10:30 a.m. EDT.
HEXO is potentially taking advantage of its higher share price with a filing to raise up to $1 billion to be able to issue common shares, warrants, or subscription units. For perspective, the company currently has a market capitalization of $680 million, leading investors to wonder how much potential dilution might be ahead.
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Source Fool.com
