In a move surprising absolutely no one, Hexo Corp (TSX: HEXO) has put forth a resolution to consolidate its shares, again. The resolution was included within the firms Notice of Annual and Special Meeting of Shareholders filed by the firm earlier today.
The consolidation proposed by the company is a result of the firm falling out of listing compliance with the Nasdaq. Under Nasdaq regulations, firms must maintain a share price of US$1.00 or higher to remain in good standing with the exchange. Following a continued fall from grace for the cannabis producer, the firm on January 31 announced it had fallen out of compliance and had 180 days to correct the issue.
The share consolidation proposed by the firm this morning consisted of a range of options for the company, ranging from a 1 for two reverse split to that of a one for fourteen reverse split. If approved, the shareholder resolution would permit the firms board of directors to ultimately elect at what ratio the firm consolidates, within the bounds of that range.
Hexo Corp is notably not new to share consolidations, with the company being forced to undergo a consolidation as recently as December 2020. At the time, the firm had initially proposed a one for eight consolidation with shareholders, but due to a bump in its equity, the firm ultimately enacted a one for four consolidation on December 23, 2020.
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Also proposed at the special meeting by the company is the expansion of its board from ten to twelve members, and to approve the unallocated awards under the firms omnibus long-term incentive plan.
Hexo Corp last traded at $0.80 on the TSX.
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.
4 Responses
as a smalltime investor i have invested in hexo as well as other pot stocks and have lost a fortune–to me–in doing so. who would have thought pot stocks would do so bad.
CEOs at 12M US. Buying private planes and other toys, etc., all at the shareholder expense. What a joke.
Instead of another reverse split stop paying your CEO 12 million a year!!!!don’t put this on your shareholders!!!!
Just go bankrupt. Hexo’s shareholders have compensated this company’s c-suite lifestyle for far too long. You have screwed us many times over. No one will buy its stock and certainly not any Molson-Coors product ever again.