Globe says Arviv pushing for C-suite changes at Hexo 2022-02-10 09:02 ET - In the News
The Globe and Mail reports in its Thursday edition that Hexo investor Adam Arviv, who is leading a proxy battle against the board, has lost support for chief executive officer Scott Cooper. The Globe's Jaren Kerr writes that last week, Mr. Arviv called for a board overhaul as Hexo's share price continued to tumble. Mr. Arviv plans to nominate five new directors, including himself, to Hexo's eight-man board in an effort to turn around the "underachieving company's disappointing performance." Hexo's stock has lost more than 90 per cent of its value in the past 12 months and risks being delisted from the NASDAQ exchange because of its low share price. Mr. Arviv said Hexo has not lived up to its December commitment to "implement a new path forward." He notes the stock is down an additional 25 per cent since Dec. 14. Mr. Arviv said he has grown tired of "watching them do nothing." Hexo laid off 180 workers on Wednesday as a part of its strategic plan to cut costs. Half of the jobs were back-office roles, while the rest are tied to the February closing of the company's production facility in Stellarton, N.S. Hexo estimated that the job cuts would result in $15-million in savings on an annualized basis.