HEXO Corp. (HEXO) stock plummeted 10.94% in after-hours on Thursday, August 19, 2021, and closed the daily trading at $2.85. In the regular trading session of Thursday, HEXO’s stock lost 5.88%. HEXO shares have risen 10.80% over the last 12 months, and they have moved down 11.85% in the past week. Over the past three months, the stock has lost 44.92%, while over the past six months, it has slid down 60.30%.
Let’s see is there any recent development behind its recent loss?
Proposed Public Offering of HEXO stock
On August 19, 2021, HEXO Corp announced to file a preliminary prospectus supplement to its amended and restated short form base shelf prospectus dated May 25, 2021, relating to a proposed overnight marketed public offering.
The Offering is expected to be priced in the context of the market, with the final terms of the Offering to be determined at the time of pricing.
HEXO new appointment
On August 16, 2021, HEXO Corp appointed Valerie Malone as Chief Commercial Officer, effective September 6, 2021.
Valerie brings more than 20 years of experience managing businesses across different verticals including consumer packaged goods, technology and electronics, durable goods, and consulting to her role at HEXO.
HEXO Stock listing transfer from NYSE to Nasdaq
On August 13, 2021, HEXO Corp applied to transfer its U.S. stock exchange listing from the New York Stock Exchange to the Nasdaq. While this transfer remains subject to the approval of the Nasdaq, the Company expects the transfer to occur effectively on August 23, 2021, after market close. Common HEXO stock is expected to begin trading as a Nasdaq-listed security on August 24, 2021, with the shares continuing to trade under the symbol “HEXO”.
HEXO participation in the recent conference
HEXO Corp recently participated at Canaccord Genuity 41st Annual Growth Conference, which was held on August 10, 2021.
The company was presented by its Chief Executive Officer, Sebastien St-Louis, and Chief Financial Officer, Trent MacDonald.
Redecan acquisition update
On July 14, 2021, HEXO Corp obtained and will be shortly filing the recently completed audited consolidated financial statements of Redecan for the financial year ended December 31, 2020 (FY20) and the unaudited interim financial statements for the first quarter ended March 31, 2021, in connection with its previously announced acquisition of the entities operating the business of Redecan.
On May 28, 2021, HEXO Corp entered into a definitive share purchase agreement to acquire all of the outstanding shares of the entities that carry on the business of Redecan, for a purchase price of $925 million payable in cash and through the issuance of common shares of HEXO.
Conclusion
The recent proposed public offering of HEXO Stock could be the reason behind its plummeting on Thursday and it can further slide down on Friday.
