Why Hexo Stock Wilted So Badly This Week
Hexo (NASDAQ: HEXO) is no stranger to share price declines, and investors withstood a fresh double-digit decline in their company's stock this week. According to S&P Global Market Intelligence, the Canadian marijuana operator's shares fell by nearly 15% in the period, pushing the stock's price down below $0.35 per share.
The main reason Hexo took a bath is because it's about to launch another in an ever-lengthening series of secondary stock issues. This latest model is taking the form of an at-the-market offering, under which it will selll up to $40 million in fresh common stock. This offering has a termination date of June 10, 2023; in the entirely possible scenario that that $40 million threshhold is reached earlier, it will terminate at that point.
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Source Fool.com
