Hexo Corp Fails To Meet NYSE Listing Standards, Mulls Share Consolidation
Hexo Corp (TSX: HEXO) (NYSE: HEXO) has received notification from the New York Stock Exchange that it is not currently in compliance with the continuous listing standards of the exchange. As a result, the company must regain a price of $1.00 per share, for which it is considering all options including a share consolidation.
Now that it has received the notification, Hexo Corp has a six month time frame to regain compliance. This time frame however has been extended due to the ongoing pandemic, with the deadline now extended to December 16, 2020 for Hexo to regain compliance as a result. To do so, it must maintain an average price per share of $1.00 over a thirty day period, while also closing at a price above $1.00 in any given month within the stated period. If compliance is not regained by the end of the period, the NYSE will commence suspension and delisting procedures as a result of not meeting listing standards.
Hexo has indicated that it is considering options to regain compliance, including a share consolidation “if necessary.” Notably, competitor Aurora Cannabis (TSX: ACB) (NYSE: ACB) performed its own share consolidation this week as a means to regain compliance with listing requirements.
Hexo Corp last traded at $0.45 on the NYSE.
Information for this briefing was found via Sedar and Hexo Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.