Home Cannabis HEXO Gets Approval to Be Listed on the NYSE American

HEXO Gets Approval to Be Listed on the NYSE American

HEXO

On January 17, HEXO (HEXO) announced that it received approval to be listed on the NYSE (New York Stock Exchange) American. The stock will start trading under the ticker “HEXO” on January 23. The NYSE American lists companies with small to medium capitalization, which gives them greater liquidity over the OTC market—a decentralized trading destination.

Cannabis Stocks and ETF YTD 2019-01-17

Cease trading on the OTC market

Following the company’s listing on NYSE American, its “HYYDF” will cease trading on the OTC market. According to HEXO, investors who held shares under that ticker will see the new ticker symbol reflect on their accounts. However, the company will continue to trade on the Canadian side on TSE (Toronto Stock Exchange) under the symbol “HEXO.”

Following the move, HEXO will have more stringent filing requirements. HEXO didn’t discuss how the move will benefit the company. In February 2018, Cronos Group (CRON) made a similar move by going from the OTC market to being listed on the NASDAQ Global market. In the press release, Cronos Group said, “We believe this will increase long term shareholder value by improving awareness, liquidity, and appeal to institutional investors.”

With more reporting regulations, sophisticated investors (MJ) will likely be motivated to invest in a company listed on such exchanges. HEXO could benefit from having access to capital to grow its operations similar to Canopy Growth (CGC) (WEED) and Tilray (TLRY)—listed on NYSE and NASDAQ GS.

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To learn more, read Add Cannabis Stock HEXO to Your 2019 Watch List.

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