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Why HEXO Stock Dropped 6% Tuesday

TheMotleyFool

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Shares of Canadian cannabis company HEXO (NYSE: HEXO) slid Tuesday, as the company announced the closing of one acquisition on the heels of another recent large purchase. As of 2:45 p.m. EDT, shares of HEXO were down about 6%.

Investors seem to be digesting news of a large acquisition announced late last week while another previously announced merger closed today. The latest announcement for HEXO to buy Canadian grower Redecan for the equivalent of about $765 million came after the company had already spent over $230 million this year to grow its offerings and footprint. Today's drop comes at the same time that peer Canopy Growth (NASDAQ: CGC) announced disappointing financial results.

Image source: Getty Images.

Source Fool.com

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