NEW YORK, Jan. 9, 2020 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of HEXO Corporation ("HEXO" or the "Company") (NYSE: HEXO). Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 9980.
The investigation concerns whether HEXO and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On October 4, 2019, HEXO announced the immediate resignation of its Chief Financial Officer ("CFO") Michael Monahan, after only four months as the Company's CFO.
On this news, HEXO's stock price fell $0.26 per share, or 6.4%, to close at $3.80 per share on October 7, 2019, the following trading day.
Then, on October 10, 2019, HEXO provided preliminary revenue results for the fourth quarter of fiscal year 2019 that were nearly 50% lower than previous guidance and withdrew previously announced fiscal year 2020 guidance of up to $400 million in revenue. HEXO's Chief Executive Officer Sebastien St-Louis attributed the poor performance to "lower than expected product sell through" and admitted the Company would have to make "significant changes to our sales and operations strategy to drive future results."
On this news, HEXO's stock price fell $0.83 per share, or 22.55%, to close at $2.85 per share on October 10, 2019.