Why Elixinol Global, Flight Centre, Mesoblast, & WiseTech shares are dropping lower

Mesoblast limited (ASX:MSB) and WiseTech Global Ltd (ASX:WTC) shares are two of four dropping lower on Monday…

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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a disappointing decline. The benchmark index is down 0.55% to 6,638.5 points at the time of writing.

Four shares that have fallen more than most today are listed below. Here's why they are dropping lower:

Elixinol Global Ltd (ASX: EXL)

The Elixinol Global share price is down 12% to 18.5 cents following the release of a business update. That update revealed that its agreement with Pet Releaf has been terminated. Elixinol and Pet Releaf have been in a manufacturing and supply arrangement since August 2019. However, with the agreement not making a material contribution to its operations, management decided to pull the plug.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is down 2.5% to $15.49. This appears to have been driven by concerns over the outbreak of COVID-19 in New South Wales. With border restrictions now being put in place, it has the potential to delay the recovery in the domestic travel market. This could extend the cash burn being experienced by travel companies.

Mesoblast limited (ASX: MSB)

The Mesoblast share price is down a further 4% to $2.31. Investors were selling this biotech company's shares last week after the release of a couple of disappointing updates. So much so, the Mesoblast share price crashed 47.5% lower over the period. Both its advanced chronic heart failure and COVID-19 Acute Respiratory Distress Syndrome trials failed to achieve their primary endpoints.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price has dropped 9% to $29.91. Investors have been selling the logistics solutions company's shares after it hit back at a short seller attack. Viceroy Research claims that of the 37 acquisitions made by WiseTech over the past four years, many are from distressed sales or bankrupt companies with revenues falling post-acquisition. WiseTech has refuted these claims.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of WiseTech Global. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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