As was expected by many followers of the Canadian cannabis space, it appears that Hexo Corp (TSX: HEXO) is facing some trouble with its US listing. The firm has fallen out of compliance as a result of its share price not meeting listing requirements.
The firm has seen its equity trade below US$1.00 for a period of 30 days, resulting in it no longer meeting compliance standards for the Nasdaq markets. The company now has 180 days, or until July 25, 2022, to meeting the listing requirement.
While the company has indicated it just needs to trade above $1.00 for a period of 10 consecutive trading days, the firm this morning in making the announcement did not provide a path to regaining compliance. The most common method of regaining such compliance, which it has been required to do in the past, is by conducting a share consolidation, also known as a reverse split. Hexo previously conducted a 4 to 1 share consolidation at the end of December 2020 to meet similar requirements for the NYSE, where it was listed at the time.
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It is unclear at this time how the firm intends to regain compliance.
Hexo Corp last traded at $0.65 on the TSX.
Information for this briefing was found via Sedar and Hexo Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
