Hexo (HEXO - Get Report) spiked in trading Wednesday after the cannabis company said it sold convertible debt and rescheduled its fourth-quarter earnings report due to its new financing plan.
The Gatineau, Quebec, company raised C$70 million (US$53.5 million) by selling 8% unsecured convertible debentures to an investor group. The group includes, among others, Hexo Co-Founder and CEO Sebastien St-Louis and a number of its board members.
The private placement testifies to "the value the company is expected to bring to shareholders," St-Louis said in a statement.
The company rescheduled its earnings release to Oct. 28 in light of its new financing. Hexo will hold its earnings call at 8:30 a.m. Eastern on Oct. 29.
Two weeks ago Hexo issued a fourth-quarter-revenue warning and withdrew its outlook for fiscal 2020.
Hexo's U.S. shares are trading up 6.2% at $2.75.
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