Why HEXO Stock Dropped Friday

Shares of HEXO (NYSE: HEXO) dropped on Friday after the company filed to potentially do a significant capital raise. HEXO is potentially taking advantage of its higher share price with a filing to raise up to $1 billion to be able to issue common shares, warrants, or subscription units. HEXO CEO Sebastien St-Louis said the company is setting itself up to raise the additional capital "to provide maximum flexibility as we continue to pursue strategic initiatives in both the United States and Canada."