Hexo Corp (OTCMKTS:HYYDF) is interesting for a number of reasons right now. The company is a leadership play in the emerging cannabis beverages space following the company’s recent deal with Molson Coors Brewing Company (NYSE:TAP). But investors are looking for the next move.
One strong candidate ready to potentially play that part is the company’s most recent announcement: HYYDF plans to establish a Eurozone processing, production and distribution center in Greece. According to the release, “The partnership with Greek company Qannabos (“QNBS”) will catalyze a vertically integrated cannabis enterprise to capitalize on the current medical markets. HEXO’s plan to establish operations in Greece marks the Company’s first foray into the European cannabis market. The move will provide the company presence in Europe to supply a full suite of brands in France, the United Kingdom, and other European markets once regulations permit.”
Hexo Corp (OTCMKTS:HYYDF), now commanding a market cap of $1.24B, is a company that, together with its subsidiaries, produces and distributes medical marijuana products.
The next big cannabis story to hit North America is Phoenix Life Science International (PLSI), traded in the US, but with the largest global production based in the tropics and a license to distribute worldwide. Take a look at Phoenix Life Science International PLSI), Its currently trading under $18 dollars per share on the OTC markets. Learn More Now!
HEXO will serve the adult-use market under the HEXO brand, while continuing to serve its medical cannabis clients through the well-known Hydropothecary brand. “HEXO Corp. creates and distributes innovative, easy-to-use and easy-to-understand products to serve the Canadian cannabis market. One of the country’s lowest-cost producers, HEXO is rapidly increasing its production capacity in the lead up to the adult-use cannabis market. The Company currently operates with over 310,000 sq. ft. of production capacity with construction on another 1,000,000 sq. ft. expansion set to be complete by year end. HEXO will serve the adult-use market under the HEXO brand, while continuing to serve its medical cannabis clients through the well-known Hydropothecary brand.”
The company is headquartered in Gatineau, Canada, and, as noted above, just changed its corporate name from “The Hydropothecary Corporation” to “HEXO Corp.” effective August 29, 2018. HEXO creates and distributes innovative, easy-to-use and easy-to-understand products to serve the Canadian cannabis market.
One of the country’s lowest-cost producers, HEXO is rapidly increasing its production capacity in the lead up to the adult-use cannabis market. The Company currently operates with over 310,000 sq. ft. of production capacity with construction on another 1,000,000 sq. ft. expansion set to be complete by year-end.
Hexo Corp (OTCMKTS:HYYDF) has an extremely strong balance sheet at the foundation for future company operations right now with nearly $250 million in cash and marketable securities on hand stacked against just shy of $10 million in current liabilities.
In addition, the company is pulling in sales of well over $4 million over the past year on revenue growth of around 5% on a y/y quarterly basis.
It should be noted that, as discussed above, HYYDF just hit the wires with word that it intends to establish a Eurozone processing, production, and distribution center in Greece.
The stock has been pushing higher in a strong trend to the upside over the past two months. Most importantly, volume has been rising sharply during the move, suggesting that interest has been intensifying as price per share climbs. This is very much worth noting.
“I’m excited to add European distribution capabilities for HEXO and its joint venture partners,” said Sebastien St-Louis, HEXO Corp.’s CEO and co-founder.
“By bringing brands powered by HEXO, our infrastructure and our know-how to Europe, we will be well prepared to serve a burgeoning market. This new capability will allow us to bring even more value to our hub and spoke partners in the beverage, cosmetics, and food space by giving them access to licensed cannabis infrastructure and brands in Europe. Additionally, HEXO believes that we will quickly be able to leverage our joint venture partners’ networks to take significant first-mover advantage and market share.”
This is currently one of our favorite plays, and we will take another close look at it as soon as new information comes to light.
Pushing the barriers for global distribution, Phoenix Life Science International (PLSI) is the next cannabis play. Just think Canopy x 100, that is how big their plantation in the tropics will be. No lights, no green houses, just maximum growth + minimal cost = home run. Learn More Now!
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