A lesson for the Tilray MedMen deal as Medmen is about to issue a lot of new stock ?
The Ottowa Business Jnl reports
Hexo’s shares plunged nearly 30 per cent Friday after the Ottawa-based cannabis producer announced it was issuing US$140 million worth of new units that consist of shares and future purchase warrants.
Hexo said it was issuing 47.45 million units at a price of US$2.95 per unit. A.G.P./Alliance Global Partners and Cantor Fitzgerald Canada Corporation are acting as lead underwriters and joint bookrunners for the offering, while ATB Capital Markets is acting as co-manager.
Hexo has been issuing new shares at a steady clip as it seeks to finance its ambitious expansion plans. In the past two and a half years, its total number of listed shares has tripled to more than 152 million, with each new offering tending to dilute the value of existing shares.
