Shares of Hexo Corp. plunged in early Wednesday trading after the cannabis producer said it raised $40 million in a financing that includes shares priced below the previous day's closing price. 

Hexo said an underwriting syndicate led by Canaccord Genuity agreed to purchase 52 million units from the pot producer at $0.77 apiece. Each unit includes one common share and a warrant that can be exercised over the next five years to purchase an additional share at $0.96 – matching the company’s closing price on the TSX Monday.  

Hexo said in a release it expects to use the proceeds from its financing for "working capital and other general corporate purposes."

During Hexo's conference call with analysts following its second-quarter results last month, Chief Executive Officer Sebastien St-Louis said the company needs about $150 million for its future capital needs and expects to raise that financing through an "at-the-market" equity program. Hexo raised about $130 million over the past several months, according to company releases. 

Jefferies analyst Owen Bennett said in a report released Wednesday that any material capital raised will likely result in significant dilution of Hexo's stock, and questioned whether any investors would have appetite to further finance the company. 

Hexo's financing comes several days after former Canopy Growth Corp. co-CEO Bruce Linton told BNN Bloomberg that only a select group of well-capitalized pot companies will be able to emerge intact as liquidity dries up amid the COVID-19 pandemic.

Editor’s note: An earlier version of this story included inaccurate details regarding the Hexo units. BNN Bloomberg regrets the error.