After a topsy-turvy ride on the markets over the past several months, Hexo shares had another unpredictable day in their Nasdaq debut.
The Ottawa-based cannabis company, which also trades on the Toronto Stock Exchange in Canada, transferred its U.S. market listing from the New York Stock Exchange to the rival American exchange effective Tuesday morning.
Hexo’s stock finished its first day on the Nasdaq up one cent to US$2.56. It was a choppy day as the shares went as low as $2.49 before regaining the lost value.
The company has had an ugly year on the markets – its shares peaked at US$10 on the NYSE in mid-February and have since fallen by 74 per cent.
The firm has been issuing new shares at a steady clip as it seeks to finance its expansion plans. Over the past two and a half years, its total number of listed shares has tripled, with each new offering diluting the value of existing shares.
Last week, the company announced it was issuing US$140 million worth of new units consisting of shares and future purchase warrants.
Funds from the latest offering are expected to help pay for the Ottawa firm’s $925-million acquisition of Toronto-based Redecan, which Hexo agreed to buy in late May for $400 million in cash and $525 million in shares.
Hexo also plans to use some of the funds to finance its growing U.S. operations.