A day after reporting a net loss of more than half a billion dollars in fiscal 2020, Ottawa-based cannabis producer Hexo Corp. said Friday it plans to consolidate its shares in an effort to regain compliance with the US$1 minimum share price continued listing standard of the New York Stock Exchange.
The company said late Thursday it booked a net loss of $546.5 million for the fiscal year ending July 31, up from a loss of $69.6 million a year earlier.
While Hexo earned record net revenues of $27.1 million in the fourth quarter and its overall 2020 revenues jumped 70 per cent year-over-year to $80.6 million, the cannabis producer continues to accrue significant losses as it scales up production.
OBJ360 (Sponsored)
![A business man at the airport.](https://assets.obj.ca/2024/06/FlightHub-20240624_094212_0000-300x169.jpg)
Travel smart: Four ways FlightHub offers budget-friendly business travel solutions
Canadians know that flying domestically is a challenge due to our small population, spread out across a vast space — and that it can make business travel an even bigger
![Chef Yannick Anton of the Cordon Bleu](https://assets.obj.ca/2024/06/Chef-Yannick_20240625_104056_0000-300x169.jpg)
Bringing France to Ottawa: Chef Yannick Anton recognized for contributions to the capital food scene
At the age of 14 in Nice, France, Yannick Anton was asked to choose a path for his career. After a few cooking classes in school, and seeing his grandfather
Investors gave the latest earnings report a cool reception. Shares in the company were down more than 17 per cent to 59 cents on the New York Stock Exchange on Thursday.
Hexo says avoiding a delisting of its shares from the NYSE is in the best interests of the company and its shareholders.
Under the proposal, shareholders will receive one post-consolidation share for every eight shares they hold.
Hexo says it will not issue fractional post-consolidation shares and that the number of post-consolidation shares issued to shareholders will be rounded up or down to the nearest whole number of shares.
The proposal needs shareholder approval at a meeting set for Dec. 11.
– With files from OBJ staff