Hexo Corp (HEXO) stock lost 11.23% in the after-hours session on Thursday after it lost 1.55% in the early session. HEXO shares have gone up by 183.02% over the last 12 months, and they have moved down by -10.52% in the past week. Over the past three months, the stock has lost 9.09%.
Let’s have a look at recent news about the company
Filing of $1.2B Preliminary Base Shelf Prospectus
On April 15, 2021, HEXO Corp filed a short form base shelf prospectus with securities regulators in each of the provinces and territories of Canada and a shelf registration statement on Form F–10 with the United States Securities and Exchange Commission.
HEXO would be able to make offerings of up to C$1.2 billion of common shares, warrants, subscription receipts, and units, subject to the approval of the prospectus.
Launching more cannabis-infused products
On April 14, 2021, Truss Beverage Co which is a joint venture of Molson Coors Canada and HEXO Corp introduced six new products in the category of cannabis-infused beverages in Canada
The six new products will be rolling out to retailers over the next few months and arriving just in time for summer.
Launching Bake Sale value brand
On April 06, 2021, HEXO Corp launched its latest brand called Bake Sale which offers the lowest prices per gram in the country as much as 20% less than competitor’s products in some cases.
First, of its kind, Bake Sale is ideally suited for cannabis cooking consumers and will feature two varieties, All-Purpose Flower Sativa and All-Purpose Flower Indica, in a 28 g format.
Participation in Reddit AMA
On March 24, 2021, at 6:00 p.m. ET Chief Financial Officer of HEXO Corp MacDonald participated live in Ask Me Anything on Reddit alongside the Cannalysts who manage one of Reddit’s most popular locations for Cannabis Insights and Analysis.
On March 18, 2021, HEXO Corp reported its financial results for the second quarter fiscal 2021 ended January 31, 2021. All amounts are expressed in Canadian dollars unless otherwise noted.
Q2 2021 financial highlights
- HEXO achieved total revenue of $32.8million for the reported quarter compared with $29.4 million in 1Q21.
- It achieved positive adjusted EBITDA for the seventh consecutive quarter.
- It spent $25.5 million in operational expenses in the 2nd quarter of 2021.
- It suffered a total net loss of $20.839 million in the 2nd quarter of 2021.
The recent filing prospectus which we discussed above could be the reason behind its loss on Thursday. We may see an uprise in the price because the cannabis business is growing and recent negativity could be just for a short time.