Hexo Corp (TSX: HEXO) this morning announced minutes before the opening bell that it is effectively under new management. The firm, in reaching an agreement with activist investor Adam Arviv, has seen its board rejigged, reducing the member count while also announcing a number of replacements.
The new board will be exclusively independent from members of the executive team, with John Bell resigning from his role of Chair of the Board, as well as his role as a director. Also resigning is that of Emilio Imbiglio, Adam Miron, and Scott Cooper, all of which are effective as of today.
Replacing the resigned members are that of Mark Attanasio, whom runs a private investment fund, Rob Godfrey, whom runs a consulting and property management firm, and Helene F Fortin, whom the company provided no background on whatsoever. Attanasio going forward will take the role of Chair of the Board. Arviv also retains the right to nominate an eighth member to the board of directors.
Of the resignations, perhaps the most notable is Adam Miron, whom along with Sebastian St-Louis, co-founder the company in August 2013. In announcing his departure, Miron made a brief Twitter thread wherein he thanked his supporters and stated that he was “incredibly proud” of what the company had built.
This of course, as Twitter user @BettingBruiser points out, discounts the disaster the public equity has been for long term shareholders of the company, with the company seeing a claimed 98% drawdown from its heights.
“We’ll work closely with the management team as they continue to fast-track the Company’s path to becoming a cash flow positive business,” commented Arviv on the development.
While appointed to the board today, the new members will also be approved by shareholders of the company at its next annual and special meeting of shareholders, which is currently scheduled for March 8. Notably, that meeting will also see investors vote on a proposed share consolidation.
Hexo Corp last traded at $0.71 on the TSX.
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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.