0.7000 +0.04 (6.19%)
Pre-Market: 8:25AM EDT
Commodity Channel Index
|Bid||0.6620 x 1200|
|Ask||0.6980 x 800|
|Day's Range||0.6500 - 0.7072|
|52 Week Range||0.3460 - 6.8000|
|Beta (5Y Monthly)||1.66|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
HEXO Corp (“HEXO”, or the “Company”) (TSX: HEXO; NYSE: HEXO) is proud to launch new 30 gram medical flower format for its popular high-THC strain Tsunami under HEXO medical cannabis. HEXO has been dedicated to providing Canadian clients high quality medical cannabis since 2015.
HEXO Corp (“HEXO” or the “Company”) (TSX:HEXO; NYSE:HEXO) is pleased to announce it has received its Health Canada licence amendment for the sale of dried and fresh cannabis, cannabis extracts, cannabis topicals and edible cannabis products for its cannabis manufacturing and processing facility in Belleville, Ontario. “Receiving the sales license for our Belleville facility is extremely positive news for HEXO and Truss, our joint-venture with Molson Coors Canada,” said Sebastien St-Louis, CEO and co-founder of HEXO. “This license allows us to increase our processing capability significantly, achieve greater economies of scale, and continue to roll out more innovative 2.0 products across all of our brands Powered by HEXOTM, including hash, vapes, cannabis beverages, and other edible cannabis products.”
HEXO Corp. (“HEXO”, or the “Company”) (TSX: HEXO; NYSE: HEXO) today announced the closing of its previously announced underwritten public offering (the “Offering”) for total gross proceeds to the Company of C$57,546,000. The Company sold 63,940,000 units of the Company (the “Units”) at a price of C$0.90 per Unit under the Offering, including 8,340,000 Units sold pursuant to the exercise in full of the underwriters’ over-allotment option. Each Unit is comprised of one common share of the Company and one half of one common share purchase warrant of the Company.
It has been a tough year for the Canadian cannabis industry. Not long ago, the industry was the darling of Wall Street, but it has encountered multiple growing pains. Hampered by regulatory issues as well as difficult supply and demand dynamics, valuations have tumbled as companies failed to deliver on promises and turn a profit.This is exemplified by Hexo (HEXO). Following share price depreciation of 64% in 2019, 2020 hasn’t been much better, with the stock down by 69% year-to-date.Recently, Hexo disclosed it planned to raise much needed cash through an equity sale. The company plans to convert C$30 million principal of its C$70 million debenture into shares/warrants, offered at a 20% discount to the trading price – C$0.80 per unit (at the time of the offer) – with an exercise price of C$1 for a period of three years. Originally issued in October 2019, the debentures are set to be paid by December 2022, and all in all, indicate total dilution, including warrants, of 12%.“While the decision is ultimately a move we agree with, we do think it suggests the ongoing cash struggles for the company, while eyebrows may be raised around insiders who subscribed to the initial offering just seven month ago now receiving heavily discounted shares,” said Jefferies analyst Owen Bennett.Since early December 2019, the company has enacted three equity raises, and Bennett believes the latest dilution won’t come as much of a surprise to anyone following the company’s progress. The terms of the deal suggest “that cash needs may continue to be an issue plaguing the company near term,” with the goal of turning both EBITDA and cash flow positive hampered by the “not insignificant” interest payments.Despite bullish comments concerning the reception of the company’s Original Stash value brand, and considering the fact that these debentures were handed out less than seven months ago, it could be that recent performance has not been as strong as anticipated.Moreover, questions are likely to come up regarding “insider involvement.” Bennett explained, “One of the more bullish reads from the initial debenture offering was that insiders, including the CEO, were to subscribe to c.12% of the C$70 million offering, signaling conviction in the longer-term story. The fact today that close to 30% of the C$30 million converting are the same insiders may not sit well with current shareholders.”To this end, Bennett reiterated an Underperform call on Hexo alongside a C$0.50 ($0.72) price target, implying 42% upside potential. (To watch Bennett’s track record, click here)To find good ideas for cannabis stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. More recent articles from Smarter Analyst: * Apple Snaps Up AI Startup Inductiv, As Analysts Boost PTs On Store Reopenings * Microsoft Seeks $2B Stake In India’s Jio Platforms- Report * Google Faces Arizona Lawsuit Over ‘Unfair’ Location Data Storing * Novavax Seeks To Make 1 Billion Covid-19 Vaccine Doses; Top Analyst Ramps Up PT To $61
OTTAWA , May 19, 2020 /CNW/ - HEXO Corp. ("HEXO", or the "Company") (TSX: HEXO; NYSE: HEXO) today announced the pricing of its previously announced overnight marketed public offering (the "Offering") of units of the Company (the "Units") at a price of C$0.90 per Unit. The underwriters for the Offering have agreed to purchase 55,600,000 Units from the Company for total gross proceeds to the Company of C$50,040,000 .
Hexo Corp. shares fell 12.3% in the extended session Monday after the company said it planned to raise cash through an equity sale. Hexo did not say how much stock it would sell or name a price. Hexo said it expected to price the shares "in the context of the market" and the terms will be determined when it prices the shares. The company said Canacord Genuity would lead the deal.
OTTAWA , May 18, 2020 /CNW/ - HEXO Corp. ("HEXO", or the "Company") (TSX: HEXO; NYSE: HEXO) today announced that it will be filing a preliminary prospectus supplement (the "Preliminary Supplement") to its amended and restated short form base shelf prospectus dated December 14, 2018 (the "Base Shelf Prospectus") relating to a proposed overnight marketed public offering (the "Offering") of units of the Company (the "Units"). The Offering is expected to be priced in the context of the market, with the final terms of the Offering to be determined at the time of pricing.
HEXO Corp. (“HEXO”, or the “Company”) (TSX: HEXO; NYSE: HEXO) today announced that holders of $29.86 million aggregate principal amount of the Company’s 8% unsecured convertible debentures maturing December 5, 2022 (the “Debentures”) have accepted an opportunity offered by the Company to voluntarily convert all or a portion of their Debentures for Conversion Units (as defined below) (the “Early Conversion Option”). The Company offered the Early Conversion Option to all holders of the $70 million aggregate principal amount of the Debentures (the “Debentureholders”), subject to acceptance by Debentureholders (each an “Electing Debentureholder”) holding a minimum of $20 million aggregate principal amount of the Debentures by May 17, 2020.
HEXO Corp. (“HEXO”, or the “Company”) (TSX: HEXO; NYSE: HEXO) today announced that it received notification from the New York Stock Exchange (the “NYSE”) on April 7, 2020 that the Company was no longer in compliance with the NYSE's US$1.00 share price continued listing standard (the “Price Listing Standard”) as a result of the average closing price of its common shares on the NYSE falling below US$1.00 for a consecutive 30 trading-day period. The issuance of the notification was not discretionary and is sent automatically when a listed company’s share price falls below the Price Listing Standard.
The new joint venture expands a partnership the beverage company and cannabis company launched two years ago in Canada.
Molson Coors Beverage Company and HEXO Corp have formed a joint venture to explore opportunities for non-alcohol hemp-derived CBD beverages in CO.
HEXO Corp. (“HEXO”, or the “Company”) (TSX: HEXO; NYSE: HEXO) today announced the closing of its previously announced underwritten public offering (the “Offering”) for total gross proceeds to the Company of approximately C$46 million. The Company sold 59,800,000 units of the Company (the “Units”) at a price of C$0.77 per Unit under the Offering, including 7,800,000 Units sold pursuant to the exercise in full of the underwriters’ over-allotment option. Each Unit is comprised of one common share of the Company and one common share purchase warrant of the Company.
OTTAWA , April 8, 2020 /CNW/ - HEXO Corp. ("HEXO", or the "Company") (TSX: HEXO; NYSE: HEXO) today announced the pricing of its previously announced underwritten public offering (the "Offering") of units of the Company (the "Units") at a price of C$0.77 per Unit. The underwriters for the Offering have agreed to purchase 52,000,000 Units from the Company for total gross proceeds to the Company of approximately C$40 million .
Hexo Corp. said Wednesday it will file an amended shelf prospectus relating to the proposed public offering of shares, which was originally filed in December 2018. The Canada-based cannabis company said the offering is expected to be priced "in the context of the market." The stock fell 4.4% in premarket trading. On Tuesday, Hexo disclosed that at the request of the company, with a recommendation by its audit committee, MNP LLP resigned as auditor on Jan. 31. On the same date, Hexo hired PricewaterhouseCoopers LLP as its auditor. The stock has lost 50.4% over the past three months through Tuesday, while the ETFMG Alternative Harvest ETF has dropped 32.9% and the S&P 500 has slid 18.3%.
The market wasn’t very happy with the FQ2 results from HEXO (HEXO), but the Canadian cannabis company is making some definite headway on becoming a legitimate force in the global cannabis sector. As HEXO slowly regains its footings from the sector collapse and company specific problems, investors can finally start looking toward the long-term potential of the Molson Coors (TAP) partnership.FQ2 Results Somehow, some financial websites listed HEXO as missing FQ2 estimates despite the company providing an update placing revenues at C$17.0 million. The company hit this number exactly on target and importantly cut EBITDA losses in half to C$10.3 million. Gone are the days of HEXO producing massive losses after the two prior quarters combined for EBITDA losses of nearly C$50.0 million.The company cutting losses from operations is a big step for their progression as a legitimate cannabis enterprise. The next issue is to solve the cash burn.The major reason for delaying the filing of the quarterly reports was the calculation around the C$250 million impairment charges and another C$16 million in inventory charges. The numbers were in the range of forecasts between C$265 million to C$280 million so these charges didn’t move the stock.The big issue is with cash flows and the disconnect with the company producing 22,305 kg of cannabis while only selling 6,579 kg. The gross overproduction has real impacts on cash flows despite the improving operations based on actual products sold.Cash BurnAccording to calculations, HEXO burned C$51 million of cash from operations during the quarter, up from C$34 million in the prior quarter. The huge cash burn of C$80 million was despite an improvement in the capex spending with a C$16 million dip in the sequential quarte to C$29 million.Even the reduced level of capex spending still has HEXO spending nearly double on facilities as the level of net revenues of only C$17 million. The other issue is the company producing nearly 4x the amount of cannabis sold on a quarterly basis.The company plans to shutter the Niagara Facility for good, but HEXO has to reduce quarterly cannabis cultivation to levels commensurate with sales. As an example, inventory levels ended the January quarter with a balance of C$94 million, up from C$85 million in FQ1 despite the C$16 million write down. The inventory levels are at levels that will cover product sales for up to a year.While the big write downs are sometimes ignored in businesses with a focus on current operations, the Canadian cannabis industry still hasn’t been able to match cultivation levels with cannabis sales levels to avoid dumping assets. The big step for the upcoming FQ3 report will be HEXO turning the improvements in operations on the income statement into an improving balance sheet with a substantial cut in cash burn as inventory turns into cash.TakeawayThe key investor takeaway is that HEXO got beaten down again following the reporting of the FQ2 report after the initial delay. The company is slowly making positive steps and started this quarter with C$81 million in cash, but management suggests the need to raise more capital this fiscal year. If the company can turn the inventory into cash and reduce the capital requirements, the stock is a solid buy below $1 as the Molson Coors partnership starts to produce cannabis beverages.Despite the recent sell-off, HEXO boasts “very positive” sentiment from TipRanks investors – a readout of individual investor portfolios tracked by TipRanks on its Smart Portfolio platform.Disclosure: No position.
You know there was some bad news with a company's quarterly update when the stock tanks after the results are announced. That's what happened Monday with Hexo (HEXO). The cannabis player shares fell 27% after the announcement of its fiscal second-quarter results, and one analyst thinks it has farther to fall.Jefferies analyst Owen Bennett reiterated a Sell rating on Hexo shares along with a $0.70 price target, indicating further downside to the tune of 16%. (To watch Bennett’s track record, click here)Considering the company announced net revenue of C$17 million, which translates to a 17% rise from the previous quarter and a 27% year-over-year increase, what has prompted the negative sentiment?Well, first of all, Hexo reported the worst net loss in its history -- C$298.2 million.And that dire figure leads to the following fact: Hexo’s cash position is hanging precariously in the balance; The company ended the quarter with C$81.4 million. HEXO admitted that in order to fund operations in the current fiscal year it will need to raise additional capital. A difficult task in such times.Bennett opined, “Focus today though will likely rest on the cash situation, with the disclosure that further raises will be necessary despite raising almost C$130m during the quarter. The fact is that cash burn remains too high, with -C$85m of operating cash flow in the quarter relative to a cash balance of C$80m. As we have previously highlighted, attempting to raise cash in the current environment is not something that is likely to be done on favourable terms, as highlighted by Tilray's latest financing.”Does the rest of the Street predict a rosier year ahead for Hexo?Looking at the consensus breakdown, the bears have it. Based on 2 Buys, 4 Holds and 5 Sell ratings received in the last three months, the word on the Street is that Hexo is a Sell. Having said that, its $1.12 average price target implies that shares could soar 34% in the next twelve months. (See Hexo stock analysis on TipRanks)To find good ideas for cannabis stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. More recent articles from Smarter Analyst: * Google, Apple Join Forces to Develop Coronavirus Tracking Technology * S&P; Cuts General Electric's Credit Outlook to Negative Amid Debt Concern * 3M Sues Performance Supply For Alleged Price Gouging of its Respirator Masks * Chembio Spikes 8% As Covid-19 Antibody Test Picked For Study
STOCK ALERT Marijuana firms (HEXO) and (CRON) both reported earnings on Monday—to far different effects. Hexo, which released its January quarter results before the market opened Monday, shed more than a quarter of its value.
Marijuana producer Hexo Corp. led cannabis stocks down Monday, falling 21% after the company reported earnings that were hit by write-downs.
Hexo Corp. said Monday it had a net loss of C$298.2 million ($210.8 million) in its fiscal second quarter to Jan. 31, far wider than the loss of C$4.3 million posted in the year-earlier period. The Quebec-based Canadian cannabis company did not offer a per-share figure. Revenue net of excise taxes came to C$17.0 million, up from $13.4 million a year ago. Revenue from sales of adult-use cannabis rose to C$16.3 million from C$12.2 million a year ago. The company said it wrote down surplus cannabis trim and milled products valued at C$3.1 million, due to an excess of supply related to its short-term demand for cannabis distillate production. It also wrote down a concentrated bulk purchase of C$11.8 million that was partly due to oversupply in the market. The bulk product was acquired through a supply agreement that is currently the subject of litigation. The company booked an impairment loss of C$138.3 million relating to its Niagara faility which is up for sale and on intangible assets acquired from Newstrike Brands. It also booked a goodwill impairment charge of C$111.9 million. The company said its manufacturing facilities remain open during the coronavirus outbreak but it has introduced working-from-home policies and cleaning measures to protect staff. Shares fell 2.8% premarket and are down 31% in the year to date.
Key Operating Highlights Net Revenue increased 17% to $17.0M from $14.5M in Q1Adult-use grams and gram equivalents sold increased 57% to 6,579 kg compared to prior.
OTTAWA, March 27, 2020 -- HEXO Corp (“HEXO” or the “Company”) (TSX: HEXO; NYSE: HEXO) plans to release its complete financial results for the quarter ended January 31, 2020.
HEXO Corp (TSX: HEXO; NYSE: HEXO) (“HEXO” or the “Company”) is confirming it is remaining operational on the heels of the cannabis sector being included as an essential workplace in Ontario and Quebec. “Given our role in supplying medical cannabis to patients and in the adult-use cannabis supply chain, our operations in Ontario and Quebec are to be maintained and our business is considered an essential workplace,” said Sebastien St-Louis, CEO and co-founder of HEXO.
HEXO (HEXO) couldn’t have picked a worse time to announce a delayed filing of FQ2 numbers. The stock market is in the midst of a melt down and any perceived bad news is going to crush any stock. The good news was a revenue beat for the quarter and the delayed filing for an asset impairment charge isn’t necessarily impactful to the investment story.Delayed FilingOn March 17, HEXO announced a delay of the FQ2 financials due for the quarter ending January 31. The filing was due on March 16.The cannabis company blamed the delay on needing more time to finalize a large impairment charge and update disclosures to the MD&As based on romments from the Ontario Securities Commission.The company forecasts reporting an asset impairment charge of C$265 million to C$280 million. With the state of the Canadian cannabis sector and the asset write downs from other companies in the sector, no investor should be surprised by this move.HEXO ended the October quarter with C$330 million of property, plant and equipment with another C$235 million in intangible assets and goodwill and inventory at C$85 million. These asset levels are very high for their revenue base.These moves are always made after a stock has been crushed and are more reflective of the current market environment and not related to future growth opportunities.In addition, the company plans to sell their Niagara facility to completely pull the facility out of future production plans. Closing the facility for good isn’t surprising considering the market shift to outdoor production and HEXO producing 16k kg in the last few quarters while only selling slightly above 4K kg per quarter.Promising SalesThe key figure in the press release was the release of gross sales at C$23.8 million with net sales at C$17.0 million. The net revenues grew 17% sequentially from C$14.5 million in the prior quarter.The net sales number is key as HEXO has only reached a previous quarterly high of C$15.4 million back in FQ4. The amount was even slightly above analyst estimates.In normal market times, the market would’ve celebrated these sales numbers likely boosted from the shift to a value brand late last year before the cannabis market officially shifted. The market will definitely want to see how expenses were constrained in the quarter along with an update to gross margins with the new value brand likely leading the way in sales growth.The initial numbers provide some encouragement that HEXO was on pace to meet goals for substantial revenue growth throughout 2020 as new stores rollout in Canada and Cannabis 2.0 products reach the market. The coronavirus could shut down the momentum in the current quarter.Consensus VerdictThe consensus price target of $1.17 shows a double-digit upside, but based on all the ratings received over the past three months, the consensus rating on HEXO is a Moderate Sell, at least according to TipRanks. While 2 analysts are on the Buy side, 3 say Hold and 5 advise investors to abandon ship. (See Hexo stock analysis on TipRanks)TakeawayThe key investor takeaway is that HEXO got beaten to a pulp due to a delayed quarterly filing, but the company beat on key revenue figures. HEXO is clearly hitting a point where the company is finally achieving real momentum in the market.As Canada gets beyond the coronavirus crisis that has already caused Canopy Growth to close stores, HEXO is a stock to own.To find good ideas for cannabis stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.