Cannabis Watch: Canadian cannabis company Hexo stock tanks after offering that dilutes existing shares

U.S.-listed shares of Canadian cannabis company Hexo Corp. tumbled more than 20% Thursday, after the Ottawa-based company said it has raised $25 million in a direct offering, diluting the value of its existing shares. The decline puts the stock HEXO, +4.58% HEXO, -18.29%  on track for its second-worst one-day percentage decline after a steep selloff…

Cannabis Watch: Canadian cannabis company Hexo stock tanks after offering that dilutes existing shares

U.S.-listed shares of Canadian cannabis company Hexo Corp. tumbled more than 20% Thursday, after the Ottawa-based company said it has raised $25 million in a direct offering, diluting the value of its existing shares. The decline puts the stock

HEXO, +4.58%

HEXO, -18.29%

 on track for its second-worst one-day percentage decline after a steep selloff on Oct. 10. Hexo said it sold 14.9 million shares at $1.67 a pop, a discount to Tuesday’s closing price of $1.96. The company said it plans to use the proceeds for working capital and general corporate purposes, including to fund research and development. The move is the latest dilutive financing by a Canadian cannabis company, as companies struggle to access capital to
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