Hexo Shareholder: Comments, Not Undisclosed News, Behind Stock Rise
TORONTO — Marijuana company Hexo Corp. says it is not aware of any undisclosed news or change to its operations that would account for recent volatility in its stock market activity.
The Quebec-based company made the statement at the request of the Investment Industry Regulatory Organization of Canada, the national self-regulatory organization that oversees all investment dealers and their trading in Canada’s debt and equity markets.
Hexo’s shares gained nearly 10 percent at $7.79 in midday trading and are up by about 32 percent over the past few days.
Chief executive Sebastien St-Louis says there is no formal strategic review process at this time and attributed the stock activity to comments Thursday from shareholders.
Riposte, an activist investor that is Hexo’s second-largest shareholder, urged the company formerly known as Hydropothecary to launch a review of its strategic alternatives including a possible sale of the company.
The New York-based investment firm said Hexo’s contract with the SAQ, Quebec’s liquor agency, and its joint venture with Molson Coors Brewing Co. as key advantages that are not reflected in its stock price.
Companies in this story: (TSX:HEXO)
The Canadian Press