Although there was a worrying development with regards to the Canada based cannabis company Hexo Corp (TSE:HEXO) (NASDAQ:HEXO) on Monday, the stock actually performed strongly and went up by as much as 13% for the day.
On Monday, HEXO stock soared 10.77% to C$0.72 with more than 2.54 million shares, compared to its average volume of 3.04 million shares. The stock has moved within a range of $0.6300 – 0.7200 after opening trade at $0.64.
Yesterday, the company came into focus after it announced that it had been notified by the NASDAQ exchange that its stock was no longer compliant with the minimum bid price requirements of the exchange. The notification came about after the Hexo stock traded at levels below a dollar for 30 consecutive trading days. Last Friday the stock had ended the day at 50 cents a share.
The company has been given 180 calendar days within which it would need to be compliant again or else, the Hexo stock is going to be delisted from NASDAQ. The possibility of a delisting can never be a good thing but it seems that investors were not particularly worried with regards to the situation. In fact, investors piled on to the stock on Monday and sent it soaring. It may now be a good move to add the stock to your watch lists and watch out for further movements in the coming days.
HEXO stock is trading above the 20-Day and 200-Day Moving averages of $0.60 and $0.82 respectively. Moreover, the stock is above 50-Day moving average of $3.17.