HEXO Stock Recovers After Releasing Corrected Full Year Earnings

HEXO stock

HEXO stock is recovering on the first trading session of 2020 after HEXO Corp (TSX:HEXO) (NYSE:HEXO) issued a correction to its financial statements with Canadian regulators late Tuesday.

Narrows Full Fiscal-Year Loss

One of the things that everyone agrees with regards to the cannabis industry is that 2019 was a bad year, and most cannabis companies suffered to some extent throughout the year. In a new development, HEXO Corp made an important announcement that could have an important effect on its stock going forward.

Late Tuesday, the company filed a correction to its financial statements with the regulators in Canada. The corrections were filed for the quarter ending in July and the quarter ending in October. The corrections are going to bring down the total amount of the company’s losses in the full fiscal year.

This is a positive development for the company, so it came as no surprise when HEXO stock price gained as much as 4.5% on the back of the update. After the correction, the losses for the fiscal first quarter will drop from $62.4 million CAD to $60 million CAD.

>> What Investors Can Learn from the Five Best Cannabis Stocks of 2019

The losses for the full-year will drop to $69.6 million CAD from $81.6 million CAD. After the filing was made, the company did not instantly react to queries. It goes without saying that market watchers will be tracking this stock closely over the coming days.

HEXO stock is up 5% at $1.66 USD.

HEXO Stock Fell Last Week After New Stock Offering

This latest update must have come as a major boost for the company and its investors considering the events of the last week of December. Back on December 27, HEXO stock tumbled after the company announced that it was going to issue new shares in order to raise further capital.

The company announced that it is going to raise as many as 15 million new shares, and it came as a shock to the market because it would further dilute the value of HEXO’s existing stock.

After the announcement was made, HEXO stock dropped by as much as 21% to its lowest level in two years.

>> Read More HEXO News

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