The main supplier of the Quebec Cannabis Society, Hexo, could be delisted from the Nasdaq if the value of its shares does not exceed US$1.00 by the end of July. One more tile that falls on the Gatineau company that has been collecting deficits for years.
The Nasdaq Stock Market sent a notice to Hexo earlier this week informing it that the value of its shares had been trading below the New York Stock Exchange’s requirements for 30 days. Under Nasdaq rules, common stocks of companies must maintain a price of at least US$1.00. For nearly a year, Hexo’s stock has fallen 93%, from $10.28 to $0.66.
Hexo now has 180 days to comply with the Nasdaq requirements. The Company’s share price must by July 25, 2022 be at or above US$1.00 for at least 10 consecutive trading days. The Nasdaq notice is not expected to affect the future of Hexo’s other stock market listings, which is also listed on the Toronto Stock Exchange.
The Gatineau company has been in a precarious financial situation for a long time. Its latest financial statements showed losses of $117 million.
Hexo has restructured the composition of its management members in recent months. The CEO. Sébastien St-Louis left his post in October 2021, while in December the company changed its financial director for the fifth time in two years.
Hexo also initiated steps this fall with the Ministry of the Economy to obtain “a state participation in the company’s share capital”, can we read in the register of lobbyists. The company indicates that the financial support would “accelerate the company’s innovation program and consolidate jobs at the head office”.
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