Why Curaleaf Holdings, Sundial Growers, and Hexo Jumped Then Dropped Today
Canadian cannabis companies have had a tough week on the heels of Hexo's (NASDAQ: HEXO) quarterly financial report. But after the shares of Hexo and peer Sundial Growers (NASDAQ: SNDL) rebounded earlier today, they, along with American counterparts Curaleaf Holdings (OTC: CURLF) and Green Thumb Industries (OTC: GTBIF), reversed course. As of 1 p.m. ET, Curleaf and Green Thumb shares were down 2.9% and 1%, respectively. And while Hexo and Sundial stocks had both jumped more than 5% earlier in the session, they had reversed those gains as well with a drop of 0.1% and gain of 0.45%, respectively.
Investors in the industry were spooked earlier this week after Hexo reported a large net loss for its fiscal 2022 first quarter along with announcing a new strategic plan going forward. U.S. multi-state operators (MSOs) are now dropping, too. That comes after Curaleaf announced it was raising $425 million in high-priced debt on Monday. But the 8% interest rate is actually "materially lower" than existing debt the company has.
Source Fool.com
