It is no secret that HEXO stock has been under pressure over the past couple of months; and yet, things still looked relatively positive for HEXO Corp (TSX:HEXO) (NYSE:HEXO). It recently entered into a joint venture with Molson Coors (NYSE:TAP) and obtained a $65 million credit line facility.
This week, however, things have shifted after the HEXO CFO left his post.
Here's what we know.
HEXO Stock Tumbles on CFO Departure
On Friday, October 4, HEXO Corp disclosed that Michael Monahan, its CFO, has resigned from the Quebec-based cannabis company. In a statement, Monahan addresses why he is departing from the company, saying it doesn't have to do with the company's morals, but rather he cannot devote as much time as needed in Quebec and Ottawa.
“Since joining HEXO Corp, it has become apparent that this job requires me to spend the majority of my time in Gatineau and Ottawa," Monahan said. "During this phase of rapid expansion, the Chief Financial Officer should be working very closely with all team members, in person. This isn’t possible for me at this time given my family’s needs and so I have decided to resign."
The award-winning cannabis company has said that Stephen Burwash, who currently holds the position of Vice-President of Strategic Finance for the company, has accepted the role of HEXO CFO.
Management at HEXO Corp appears mixed at Monahan's departure. Co-founder Sebastien St-Louis said he's sorry to see Monahan leave, but he did also say that he's pleased that Stephen Burwash is taking on the role. Looking at HEXO stock, it seems the market is on a similar page.
According to Yahoo Finance, as of 10:16 AM EDT, HEXO stock is trading at $5.12 on the Toronto Stock Exchange; this puts the stock down 5.54%.
What do you think about the news? Can you see HEXO stock falling even further on Monday? Let us know your thoughts in the comments below.
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