Why HEXO Shares Took a Tumble on Thursday

On Thursday, Canadian marijuana company HEXO (NYSE: HEXO) announced yet another flotation of new securities to bolster its finances. The company's stock price soon went in the expected direction -- down, that is, by nearly 6% on the day.

In Thursday's pronouncement, HEXO said that it would issue equity "units" to investors. This is a common instrument of capital-seeking marijuana companies. Usually, one unit is a package comprising the company's stock and a warrant thrown in as a sweetener.

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Source Fool.com