Hexo unit files restructuring plan

Hexo Corp. HEXO, +2.30% HEXO, -3.77% said Friday its Zenabis Global Inc. cannabis cultivation unit has filed a petition with the Superior Court of Québec for protection under the Companies’ Creditors Arrangement Act (CCAA) to restructure its business. Ernst & Young Inc. has been appointed as monitor to oversee the CCAA process. Hexo said the CCAA petition is limited to the Zenabis Group only and not for any of its other subsidiaries or parent company. Earlier this week Hexo said in a filing it’ll reduce its workforce by 450 people in a bid to save C$30.6 million ($23.6 million) a year. Shares of Hexo rose 1.5% in premarket trades. The stock is down 71.4% in 2022, compared to a drop of 54.3% by the Cannabis ETF THCX, +1.28%.