One Giant Leap for HEXO

HEXO Corp (TSX:HEXO) somehow found a bottom to its fortunes and saw its shares reaching for the rafters on Thursday.

But a lot of suspense remains for investors, as this week, the Gatineau, Quebec-based cannabis maker said it would delay the release of its upcoming quarterly results due to “certain exceptional circumstances” and expects to report a “significant” impairment that could be as much as $280 million in the quarter.

HEXO didn’t specify the cause of the impairment which led Hexo to delay its fiscal second-quarter results.

It also said it would amend its Q4 2019 and Q1 2020 management discussion and analysis after receiving comments from the Ontario Securities Commission during disclosure review by the regulator.

Hexo revealed its net revenue in its fiscal second-quarter - the three month period ending on Jan. 31 - was $17.0 million, up 17% from the prior quarter.

“The company,” says its website, “serves adult-use market under the HEXO brand, while continuing to serve its medical cannabis clients through the Hydropothecary brand.”

Shares in HEXO hiked 32 cents, or 61.5% by early afternoon Thursday to 84 cents, on volume topping three million shares.