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Tuesday, Aug 16, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

Hexo suggests share consolidation to stay on Nasdaq

A special shareholder meeting is slated for March 8

Hexo suggests share consolidation to stay on Nasdaq
Photo via Hexo

Canadian producer Hexo Corp. (TSX: HEXO) (Nasdaq: HEXO) is asking investors to consider a second round of share consolidation in the face of losing the firm’s listing on the Nasdaq.

In its corporate filings on Monday, which lists items for a special shareholder meeting March 8, the company lists a resolution to consolidate its common shares somewhere between a two-to-one to a 14-to-one basis.

A vote would authorize Hexo’s board of directors to decide on the final consolidation ratio. In December 2020, the company consolidated its stock on a four-to-one basis.

Another item on the list will ask shareholders to approve expanding the board from 10 members to 12.

On Jan. 31, the company said it had received notice from the Nasdaq, warning that it could lose its listing. But if Hexo’s bid price of common shares closes at US$1 or more for 10 consecutive days anytime before July 25, it will regain compliance.

Read more: Hexo could lose its Nasdaq listing

Read more: In search of profits, Hexo plans for more ‘right-sizing’ in 2022

Company stock traded flat Tuesday at around US$0.64 on the Nasdaq.

Last week, the firm announced more cost-cutting measures, which include slashing 180 jobs to save around $15 million annually.

Meanwhile, an activist shareholder is trying to replace at least five current members of Hexo’s board to reverse the company’s  “disappointing performance.”

Read more: Hexo shareholder calls for board replacements as share price tanks

Read more: Hexo slashing 180 jobs to save $15M annually

 

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