NewsFeeder
Headline News
- Reaction score
- 4
UPDATE: Canadian cannabis company Hexo cuts 200 jobs as Canadian market lags expectations
Canadian cannabis company Hexo Corp. said Thursday it has cut 200 jobs as it works to adapt to a changing -- and smaller-than-expected -- Canadian cannabis market. The Gatineau, Quebec-based company said it had 822 employees at the end of its fiscal quarter in June, according to a regulatory filing. Hexo said the cuts include its chief manufacturing officer Arno Groll and chief marketing officer Nick Davies. "The actions taken this week are about rightsizing the organization to the revenue we expect to achieve in 2020," Chief Executive Sebastien St-Louis said in a statement. The news comes a day after the company said it was postponing the release of fourth-quarter earnings and that it would issue convertible bonds worth C$70 million ($53.5 million) in a private placement. The company issued a profit warning in early October and withdrew its 2020 guidance, saying the slower-than-expected rollout of stores in Canada following legalization and other structural issues had created a smaller-than-expected legal market. Shares slid 6% on the news and are down 26% in 2019, while the ETFMG Alternative Harvest ETF has fallen 18% and the S&P 500 has gained 20%.
https://finance.yahoo.com/m/f009c91...a2a3/update:-canadian-cannabis.html?.tsrc=rss
Canadian cannabis company Hexo Corp. said Thursday it has cut 200 jobs as it works to adapt to a changing -- and smaller-than-expected -- Canadian cannabis market. The Gatineau, Quebec-based company said it had 822 employees at the end of its fiscal quarter in June, according to a regulatory filing. Hexo said the cuts include its chief manufacturing officer Arno Groll and chief marketing officer Nick Davies. "The actions taken this week are about rightsizing the organization to the revenue we expect to achieve in 2020," Chief Executive Sebastien St-Louis said in a statement. The news comes a day after the company said it was postponing the release of fourth-quarter earnings and that it would issue convertible bonds worth C$70 million ($53.5 million) in a private placement. The company issued a profit warning in early October and withdrew its 2020 guidance, saying the slower-than-expected rollout of stores in Canada following legalization and other structural issues had created a smaller-than-expected legal market. Shares slid 6% on the news and are down 26% in 2019, while the ETFMG Alternative Harvest ETF has fallen 18% and the S&P 500 has gained 20%.
https://finance.yahoo.com/m/f009c91...a2a3/update:-canadian-cannabis.html?.tsrc=rss
