Hexo is the latest Canadian cannabis producer to run afoul of the New York Stock Exchange’s continued listing standards because of a low stock price.
The Ontario-based company was warned by the NYSE last month that its shares, which have fallen below $1, do not meet the exchange’s listing standards.
Hexo said it receiving the notification April 7 before notifying shareholders via a news release May 13.
Effective April 21, the NYSE is providing an extension for companies in breach of the Price Listing Standard.
As a result, Hexo now has until Dec. 16, 2020, to regain compliance.
Compliance can be regained if Hexo’s shares achieve a 30-trading-day average closing price of at least $1 per share.
If Hexo’s shares do not regain the $1 threshold by then, the NYSE will commence suspension and delisting procedures.
The company is considering its options to regain compliance, including a share consolidation, “if necessary.”
Hexo joins Alberta-based Aurora Cannabis and beleaguered Ontario producer CannTrust on the list of cannabis companies running into trouble with the NYSE.
Aurora recently consolidated its shares to boost its sagging stock price and maintain its NYSE listing.
CannTrust was delisted from the NYSE on April 27.
Hexo booked a net loss of 298 million Canadian dollars ($220 million) in its most recent quarter ending Jan. 31.