Hexo Corp. announced they are issuing 15 million new shares and that sent the stocks tumbling by 21% today on the Toronto Stock Exchange.
Bloomberg says shares fell to a new month low of $2.03, down from $2.57 on Christmas Eve.
Hexo announced on Thursday it had struck a deal with institutional investors to buy and resell 14.97 million common shares. The company intends to use the US $25 million it is targeting through the share issue for working capital and to fund research to advance its “innovation strategies.”
