Shares in cannabis firm Hexo Corp. tumbled Friday by as much as 21 per cent on the Toronto Stock Exchange after it announced it would issue about 15 million new shares, a move that could dilute the value of its existing stock.
The shares fell to a new 26-month low of $2.03 on the first trading day in Toronto following the Christmas break, down from a close of $2.57 on Christmas Eve.
Hexo announced on Thursday it had struck a deal with institutional investors to buy and resell 14.97 million common shares at $1.67 US per share, representing a 14-per-cent discount
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