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HEXO Reverse Split 2020: 12 Things Stock Investor to know

[whoknows]

LINK
https://markets.businessinsider.com/news/stocks/hexo-reverse-stock-split-details-1029747496#

Here’s what investors in HEXO need to know about the reverse stock split plan.

• The company wants to consolidate down eight shares of HEXO stock into a single share.
• The goal of this reverse stock split is to push shares of HEXO stock above $1 each.
• That’s because the New York Stock Exchange doesn’t allow shares that trade below an average of $1 for a 30-day period.
• Hexo definitely meets that criteria as its stock hasn’t traded above the $1 minimum since markets closed on June 12.
• The company believes it’s in the best interest to continue trading on the NYSE and says consolidation is the easiest way to regain compliance.
• Hexo will need shareholder approval before it can move forward with the reverse stock split plan.

• It intends to hold a special meeting on Dec. 11, 2020, to have investors in HEXO stock vote on the consolidation plan.
• The company will also need approval from the NYSE and Toronto Stock Exchange before the reverse stock split can take place.
• So long as there are no issues, Hexo says it plans to have the consolidation of shares take place shortly after its meeting with investors.
• The plan will have its total number of outstanding shares dropping from 483,445,248 to 60,430,656.
• Hexo also notes that the plan won’t allow for fractional shares of its stock.
• Instead, those shares will be rounded up or down depending on if they are greater or less than .5 shares.