Quebec's leading cannabis producer, HEXO Corp (TSX:HEXO) (NYSE:HEXO) announced earlier today that it will transfer the listing of its common shares from the NYSE American exchange to the NYSE. HEXO stock will commence trading on the NYSE on July 16, and subsequently, the company will voluntarily delist its common shares from the NYSE-A.
Shares are currently trading up 1.37% on the news, with shares swapping hands for $5.17 USD at present.
The transfer represents an uplisting of sorts for HEXO as the NYSE-A is usually comprised of smaller capped companies or newer businesses. Trading on the NYSE gives HEXO stock an added boost of legitimacy or validity.
For investors, nothing should change. HEXO stock will still trade under the ticker symbol "HEXO"—the same symbol its shares currently trade under on the NYSE-A and the TSX.
The CEO and co-founder said the following in a press release:
"We are extremely pleased to list on the NYSE and believe it reaffirms HEXO’s strong track-record for exceptional corporate governance and is further proof that we are a valuable cannabis industry partner for Fortune 500 companies."
A Rough Few Weeks for HEXO Stock
HEXO stock has faltered in recent weeks. The company has lost just over 37.5% of its value since May when its sequential sales results weren’t impressive. Net cannabis revenue fell 3% from the sequential 2nd quarter, and both medical and recreational sales declined. Furthermore, HEXO Corp's loss increased dramatically from the year-ago quarter. Adding fuel to the fire, the company suffered two downgrades from prominent analysts CIBC and Oppenheimer.
The latter dropped its rating to "Perform" from "Outperform." The former dropped its rating from "Outperform" to "Neutral." Along with the poor results, HEXO stock has suffered greatly and has found it tough to climb back from the loss.
Perhaps today's news will bolster HEXO stock, if only even a little.
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