Why Hexo Shares Got Smoked Today

Canadian cannabis company Hexo (NASDAQ: HEXO) reported its fiscal first-quarter 2022 results today, and investors were disappointed. In addition to a net loss of more than $90 million, the company also announced a new strategic plan aimed at achieving positive cash flow over the next year. Hexo shares plummeted in response on Tuesday, losing more than 10% at their lows, and closing the session at that level. 

Although net revenue increased 70% year over year for the period ended Oct. 31, and 29% sequentially from the prior quarter, operating expenses exploded higher, leading to the huge net loss. In response, the company announced a new strategic plan, dubbed The Path Forward. The company also announced a new board chairman as the previous chairman, Dr. Michael Munzar, resigned, effective immediately.

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Source Fool.com