The Globe and Mail reports in its Tuesday edition that Canadian weed companies are selling equity at highly dilutive prices to avoid defaulting on loans or running out of cash. The Globe's Mark Rendell writes that Hexo (67 cents) closed a $46-million financing on Monday, led by investment bank Canaccord Genuity, which had priced Hexo's shares 20 per cent below the market when the deal was announced last Wednesday. The market share price has since declined by more than 30 per cent. Aurora Cannabis's ($1.06) share price, meanwhile, closed down 13 per cent on Monday after it announced plans to raise $350-million (U.S.) using what is called an "at the market" (ATM) share-issuance program, which allows it to incrementally sell stock at prevailing market prices. Aurora already sold about $200-million worth of shares over the past two months using an ATM program, even as its stock price cratered. Hexo was prodded to market by its creditors Canadian Imperial Bank of Commerce and Bank of Montreal, which loaned it $65-million in 2019. In late March, CIBC and BMO altered the covenants on the loan, giving Hexo until the end of April to raise at least $40-million in equity to shore up its balance sheet or risk defaulting.