mydogchach wrote: Article from Stockwatch - gives a good overview and history of the lawsuits and shows the DD SSL APPARENTLY DIDN'T DO on Newstrike - and then APPARENTLY DIDN'T DO on Zena and then APPARENTLY DIDN'T DO on 48North.
Just how much does Hexo supply SQDC with? They might have the largest contract - but apparently that doesn't mean they ship that much.
Another Canadian company, Hexo Corp. (HEXO) lost six cents to $8.38 on 4.18 million shares, despite emerging victorious in a legal tussle. A U.S. court has dismissed a class action filed against Hexo and some of its current and former directors and officers. This follows the dismissal of a different class action by a different U.S. court in March.
Both class actions accused Hexo of "material misstatements" made in 2018 and 2019. One focused mostly on a cannabis supply agreement that Hexo entered in February, 2018, to send up to 20,000 kilograms annually into the Quebec market. Hexo repeated the number 20,000 several more times through 2018. In June, 2019, however, the company said its actual deliveries were falling well below that number, and then in October, 2019, it withdrew prior guidance on revenues and sales. Another blow -- which subsequently triggered the other class action -- fell in November, 2019, when Hexo disclosed in its financial statements that one of the facilities that it acquired through the takeover of Newstrike Brands (a fiasco for several reasons) was not actually licensed to grow cannabis. Hexo had actually learned about the facility's unlicensed status in July, 2019, but did not make an announcement to shareholders at the time. All told, and adjusting for a 1-for-4 rollback in December, 2020, Hexo's stock fell from $28 in July, 2019, to less than $9 by the time the class actions were filed in January, 2020. (It then went on to touch a low of just $2 in March, 2020, before climbing to today's close of $8.38.)
Now two U.S. courts have sided with Hexo and dismissed the class actions after finding that the plaintiffs failed to prove their case. Hexo does, however, continue to face a similar class action in a Quebec court, involving both the Quebec supply agreement and the Newstrike facility.