HEXO stock continues to move lower on Monday after HEXO Corp (TSX:HEXO) (NYSE:HEXO) said a member of its board of directors, Nathalie Bourque, has resigned from the board.
Management Reshuffling Continues
The recent days have been quite chaotic for the cannabis industry, with several announcements about layoffs and the departure of key executives. In a new development that will come as a surprise for many HEXO shareholders, this past Friday, it emerged that Nathalie Bourque has resigned from her position on the company’s board. The resignation went into effect immediately.
The company did not reveal the reasons behind her departure, nor did HEXO Corp say whether it is actively looking for a replacement. Bourque is well known for having been a veteran of the communications industry, and HEXO heaped praise on her in the press release.
HEXO stock is down by 1.70% at $1.24.
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The previous 12 months have not been particularly nice for HEXO Corp. HEXO stock lost around 75% of its value during this period. Analysts believe that poor management and the slow rollout of retail stores in key Canadian provinces are two important factors behind the poor performance. Due to oversupply, the company has also had to halve operations at an important facility.
HEXO stock has declined by so much that there are fears that it could go below the minimum bid price criteria of the New York Stock Exchange.
However, all is not lost. The company launched a cheaper brand of cannabis called Original Stash, cut down its expenses considerably, and has also established a joint cannabis beverage venture named Truss with Molson Coors (NYSE:TAP). HEXO stock is now available at a very low valuation, and it remains to be seen if investors develop an interest in the stock owing to recent developments. That being said, question marks persist with regard to the company’s management and its ability to turn the business around.
However, it cannot be denied that HEXO Corp is among the top producers and also boasts of the right mix of products. Investors could do well to track HEXO stock over the coming days.
Featured image: Canva
