|Bid||2.7600 x 0|
|Ask||2.7900 x 0|
|Day's Range||2.6800 - 2.8100|
|52 Week Range||2.0600 - 11.2900|
|Beta (3Y Monthly)||4.70|
|PE Ratio (TTM)||N/A|
|Earnings Date||Dec 16, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||3.73|
Glancy Prongay & Murray LLP Announces the Filing of a Securities Class Action on Behalf of HEXO Corp. Investors
INVESTOR ALERT: Law Offices of Howard G. Smith Announces the Filing of a Securities Class Action on Behalf of HEXO Corp. Investors
HEXO Corp. (“HEXO” or the “Company”) (TSX:HEXO; NYSE:HEXO) is pleased to announce the closing of its previously announced private placement of unsecured convertible debentures for aggregate gross proceeds of $70 million (the “Offering”). The Company intends to use the net proceeds of the Offering for working capital and general corporate purposes. “This financing demonstrates that investors are confident in HEXO,” said Sébastien St-Louis, co-founder and CEO of HEXO.
Cannabis stocks have been on the mend lately, although most are still carrying painful losses this year. Hexo (NYSE:HEXO) is not an exception to this observation. Hexo stock has been under considerable pressure, down 37% in 2019 and more than 70% from its May high.Source: Shutterstock Is the cannabis space really going to make a comeback? That much isn't clear yet, unfortunately. But we can determine which ones to buy in the event that names like Hexo stock do rebound.In November, these names fell off a cliff. I mean, really tanked hard amid relentless selling. Painful as it was, the plunge at least got the discussion going that perhaps these names were capitulating. There could still be some end-of-year selling as investors look to lock in tax losses, but positive signs are starting to emerge.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor instance, on Tuesday, when the stock market opened lower with indexes down more than 1%, pot stocks were holding in. Then they turned positive and started to gain momentum. How could cannabis stocks be green on the day when the S&P 500 index was down 1.3% for the session?These are not high-quality equities or a flight-to-safety asset class. That got my attention and I'm now taking the charts more seriously. * 7 Stocks to Buy in December Trading Hexo Stock Click to Enlarge Source: Chart courtesy of StockCharts.comAt the beginning of summer, cannabis stocks started to swoon. I flagged a few of these breakdowns, like Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB), cautioning investors to be careful now that key support was giving way.I didn't expect it would lead to some of the declines we've seen since. Many of these names are down 60% to 70% from the highs, while Tilray (NASDAQ:TLRY) is down 90%. Ouch!However, most of these names are rebounding from the lows -- Hexo stock included. Like I said of CGC the other day, two developments are now critical for bulls. First, Hexo stock price must avoid making new lows. It was a panic collapse that sent shares down to $1.56.Bulls also need to see Hexo stock price clear downtrend resistance (blue line). Clearing the 50-day moving average would also open things up a bit on the charts. In short, we need to stop seeing lower lows, and starting seeing higher lows develop on the chart.We're unlikely to go from a sharp downtrend to a massive uptrend overnight. There will be setbacks along the way, but we need to see these two developments before we can trust Hexo.On the chart above, investors can also see that $2 has played a key role lately. Below it should put investors on caution for a possible retest of the lows. If it can hold above $2 a share, a test of its downtrend marks will be in the cards, as well as a possible push to $3. Let's keep an eye on Hexo stock. Bottom Line on Hexo StockDo the charts make Hexo stock a buy? In a word: no. The charts show that the situation is improving from a few weeks ago, but has not signaled the all-clear to investors just yet.So what about the fundamentals?Judging cannabis stocks based on the fundamentals is difficult. That's because many have triple-digit sales growth but low revenue figures. Further, most are not free cash flow positive or profitable, yet garner valuations in the billions.Because of the large correction this year, Hexo stock now sports a market cap of $527 million. Is that too much? Well… * 7 Exciting Biotech Stocks to Buy Now Last year, Hexo had net revenue of 47.3 million CAD ($35.9 million) and lost over 86 million CAD. Investors should know that profits have been elusive for this company.That's not necessarily a nail in the coffin, but companies that are sacrificing profits for growth need to have staying power via the balance sheet. With just 113.5 million CAD in unrestricted cash, some investors have to be nervous. That's even as current assets sit at 314 million CAD, compared to just 52.6 million CAD in current liabilities.But the acceleration in liabilities -- with total liabilities up to 104.3 million CAD last quarter from 17.3 million CAD three quarters ago -- and the negative cash flow is a concern. Hexo isn't the worst pick, but amid a cannabis comeback, I prefer Aphria (NYSE:APHA) and Canopy Growth stock, which have stronger balance sheets.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long APHA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy That Dominated Thanksgiving Shopping * 6 Manufacturing Stocks to Buy as the Economy Recovers * The 7 Best Cryptocurrencies to Buy as Blockchain Heats Up The post Is the Right Move to Buy Hexo Stock Amid Cannabis Rebound? appeared first on InvestorPlace.
INVESTOR ALERT: Law Offices of Howard G. Smith Announces Investigation on Behalf of HEXO Corp. Investors
Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of HEXO Corp. (NYSE: HEXO) between January 25, 2019 and November 15, 2019, inclusive (the "Class Period") of the important January 27, 2020 lead plaintiff deadline in the securities class action. The lawsuit seeks to recover damages for Hexo investors under the federal securities laws.
New York, New York--(Newsfile Corp. - December 4, 2019) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in HEXO Corp. (NYSE: HEXO) ("HEXO" or the "Company") of the January 27, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. Faruqi & Faruqi logoIf you invested in HEXO stock or options between January 25, 2019 ...
GATINEAU, Quebec, Dec. 04, 2019 -- HEXO Corp (“HEXO” or the “Company”) (TSX: HEXO; NYSE: HEXO) plans to release its complete financial results for the quarter ended October 31,.
Cannabis company HEXO Corp (TSX: HEXO) (NYSE: HEXO) said Thursday that its new value brand Original Stash has reached the Ontario market. The brand will be sold to recreational consumers in Ontario at a price of $140 per ounce with taxes, Hexo said. The Ontario launch represents the second dried flower product to come from the Original Stash brand and it consists of a mid-THC indica flower blend of two strains.
Largest retail cannabis brand in Canada to strengthen its position in the recreational cannabis sector with more store openings and wind-down of Watch It! CALGARY , Dec. 2, 2019 /CNW/ - Inner Spirit Holdings Ltd. ("Inner Spirit" or the "Company") (ISH.CN), a Canadian company establishing a national network of retail cannabis stores under its Spiritleaf brand, today announced it is putting its corporate focus solely on its Spiritleaf retail cannabis brand and will be voluntarily winding-down its corporate Watch It! Inner Spirit went public in July 2018 and leveraged the experience that the management team gained from operating the Watch It!
Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of purchasers of the securities of HEXO Corp. (NYSE: HEXO) between January 25, 2019 and November 15, 2019, inclusive (the "Class Period"). The lawsuit seeks to recover damages for HEXO investors under the federal securities laws.
Morganti & Co., P.C., a cross border shareholder’s rights law firm, has commenced a shareholder class action lawsuit against HEXO Corp. for publishing investor documents containing misrepresentations of material fact about the terms of its production agreement with the province of Quebec and licensing status of its production and cultivation facility in Niagara, Ontario.
Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against HEXO Corp. ("HEXO") or the "Company") (NYSE: HEXO) and certain of its officers, on behalf of shareholders who purchased HEXO securities between January 25, 2019 and November 15, 2019, inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: www.bgandg.com/hexo.
HEXO Corp (TSX: HEXO; NYSE: HEXO) (“HEXO” or the “Company”) is proud to launch Original Stash, its new value brand, in Ontario on Black Friday (Friday, November 29, 2019). Adult-use consumers in Ontario will be able to purchase 28 grams (1 oz) of quality dried cannabis flower at black market prices, retailing at $140 ($5 per gram), including taxes.
Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action has been filed on behalf of investors that purchased or acquired the securities of HEXO Corp., Inc. ("HEXO" or the "Company") (NYSE: HEXO) between January 25, 2019 and November 15, 2019, (the "Class Period"). The lawsuit filed in the United States District Court for the Southern District of New York alleges violations of the Securities Exchange Act of 1934.
Hagens Berman filed a class action complaint on behalf of HEXO Corp. investors against the company and its senior executives.
Despite the big three-day bounce in the cannabis sector, bearish investors remain plentiful, as the list of stocks with the highest borrowing costs for a short sale is littered with those in the marijuana business.
If you own Hexo (NYSE:HEXO) stock, you're probably wondering if it can get any worse. Hexo's share price was recently down 80% from its April peak. Just since the beginning of October, HEXO stock had lost more than half of its remaining value. Shares recently tanked below the $2 mark following lousy earnings both at Hexo and at rivals such as Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB). This week, though, HEXO stock has put in a substantial turnaround, moving from below $2 back to more than $2.50 per share.Source: Shutterstock Was that the final bottom in HEXO stock? With folks looking past last quarter's earnings, and with the tax-loss selling season winding down, is this the time to load up on the shares?While the bounce in HEXO stock may continue for now, for longer-term investors, sadly, there's even more downside ahead for Hexo. Here's why.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Disastrous Quarterly ResultsHexo's earnings results at the end of October gave investors little reason for optimism. It's no surprise that traders have dumped HEXO since the company announced earnings.Looking merely at revenues, things might not seem that bad. Overall corporate revenues jumped from 13 million CAD ($9.79) to 15.4 million CAD sequentially. That leaves out a key fact, though. The merger with Newstrike closed this quarter. Excluding those revenues, Hexo's sales would have been less than 13 million CAD , making a second consecutive quarter of falling revenues. * 5 Lottery Stocks With Triple-Digit Upside This makes sense, as Hexo isn't a leader in the medical cannabis space … yet. Meanwhile, prices are plunging in the recreational space as inventory vastly exceeds demand. This led to a particularly unfortunate situation where Hexo purchased inventory earlier this year from outside parties, and is now forced to resell that supply at a loss.This quarter's earnings confirm that Hexo's business strategy hasn't worked out any better than its peers. And there's no near-term turnaround in the works.The company lowered Q1 2020 guidance and pulled its previous full-year 2020 guidance altogether. Think about it: With even the likes of Aurora and Canopy struggling mightily, why buy Hexo? Shrinking To SurviveUntil recently, Hexo had been pitching investors an incredible growth story. Things have changed dramatically though; now Hexo is retrenching.They're reducing the levels of operations at their home facility in Quebec. And they're suspending grow operations at their Niagara facility which they just finished acquiring from Newstrike. On top of that, they're laying off several hundred employees. Again, none of this is unique to Hexo, rather, it's a similar refrain across the cannabis space. But it shows questionable planning on Hexo's part; their strategic moves simply haven't panned out throughout the year.The Newstrike deal in particular has raised more concern due to an admission that some unlicensed cannabis was inadvertently grown there. As Hexo disclosed in a recent press release:On July 30, 2019, shortly after the Newstrike Brand Ltd. acquisition closed, HEXO discovered that cannabis was being grown in Block B, which was not adequately licensed. HEXO management immediately ceased cultivation and production activities in the unlicensed space. The Company notified Health Canada instantly, and the regulator was satisfied with HEXO management's corrective actions. For now, it appears this won't be a major issue for HEXO stock, particularly since they are dialing back growing operations anyway. However, don't forget what happened to CannTrust (NYSE:CTST) earlier this year; the regulators can hit hard if they sense any more weakness in compliance. Hexo Let Investors Down With Optimistic GuidanceWe know the marijuana industry is going through a tremendous struggle at the moment. We can forgive a management team for doing its best and coming up short of expectations given the incredible headwinds in the industry right now. It's harder, however, to look the other way if management gives wildly promotional forward guidance and then whiffs by a mile. * 9 Tantalizing Dividend Stocks for 2020 Heading into the October quarter, management had suggested that the company would bring in more than 30 million CAD in revenues. The actual number was only half of what it had expected. And for 2020, Hexo had been projecting 400 million CAD in sales. Now it is struggling to grow revenues at all. Needless to say, with the most recent quarterly results coming in at just 15.4 million CAD, the company is annualizing at about 60 million CAD -- there's no reasonable path to 400 million CAD in sales in the near future, and anyone that bought HEXO stock on that previous guidance has got to be extremely frustrated now. HEXO Stock VerdictThe HEXO stock story isn't over yet. The company, with its recent capital raise, still has money to keep on going for quite awhile yet. And while management's recent cut to guidance was devastating, there is still a potential growth story here.Sure, it'd be wise to scale back your expectations after what we just saw. Still, the company has several irons in the fire, including its joint venture with Molson Coors (NYSE:TAP) that could give it a big leg up in grabbing the cannabis beverages market. I've said it before, I'd much rather own TAP stock than HEXO stock if that's the angle you're interested in. If it works out, both companies will prosper, if it flops, Molson Coors still has the beer business to keep paying the bills. Regardless, it's a potential catalyst that could revitalize the HEXO stock price.At the end of the day, though, Hexo is still selling for a more-than $650 million market cap. That's really high for a company that is losing lots of money, has seen revenue growth stall out and whose management just blew its credibility with its previous revenue forecast.I know HEXO stock may seem cheap given the sub-$2.50 share price. But even at this level, it's still baking in a lot of optimism that the company will get back on track in 2020. I'm not so confident of that.At the time of this writing, Ian Bezek owned TAP stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Marijuana Penny Stocks That Have Ridiculous Possibilities * 7 High-Yield ETFs to Buy Now * 4 Dow Jones Industrial Average Stocks to Sell The post Sell Any Bounce in Hexo Stock After Massive Earnings Flop appeared first on InvestorPlace.
CALGARY , Nov. 21, 2019 /CNW/ - Inner Spirit Holdings Ltd. ("Inner Spirit" or the "Company") (ISH.CN), a Canadian company establishing a national network of retail cannabis stores under its Spiritleaf brand, today announced it has filed its interim Financial Statements and corresponding Management's Discussion and Analysis for the quarter ended September 30, 2019 . The filings are available for review on the Company's SEDAR profile at www.sedar.com and on the Company's website at www.innerspiritholdings.com.
You don't have to look too far to recognize the devastation that has occurred among marijuana stocks. Due to generally disappointing financial performances, the sector has been awash in red ink. Unfortunately, investors are losing patience with this chronically losing market, which has -- unsurprisingly -- affected marijuana penny stocks disproportionately.Naturally, I understand if someone is hesitant to dive into this sector, irrespective of the discount. We can talk all day about the transformative potential of legal cannabis, and I've done exactly that. But Wall Street has nervously eyeballed financial viability. Without any of the major players stepping up to the plate, cannabis investments, especially marijuana penny stocks, have incurred volatility.But if you're willing to absorb the bruises inherent in "botanical" companies, you may want to reconsider marijuana stocks. First, several green competitors rebounded on Tuesday on the announcement of a proposed Congressional bill to remove "criminal prohibitions against marijuana at the federal level."InvestorPlace - Stock Market News, Stock Advice & Trading TipsIf successful, this would represent a huge lift for both the major cannabis players and marijuana penny stocks. Currently, the Agriculture Improvement Act of 2018, colloquially known as the farm bill, federally legalizes industrial hemp and hemp-derived products. Specifically, this means that hemp or hemp-derived cannabis products like cannabidiol (CBD) cannot contain more than 0.3% tetrahydrocannabinol (THC) content.A second upshot for marijuana stocks is that Americans have a growing distrust for the medical system. That's not surprising, considering major pharmaceutical firms' involvement in the raging opioid crisis. People are looking for true, naturally sourced therapies and cannabis offers a viable pathway. * 7 Killer Stocks No One Knows About With that, let's take a look at seven compelling marijuana penny stocks: cbdMD (YCBD)Source: Shutterstock Before I get into it, I should caveat that cbdMD (NYSEAMERICAN:YCBD) isn't a name most folks would consider belonging among key marijuana penny stocks to buy. Furthermore, cbdMD does not specialize in marijuana products. Instead, they focus on broad spectrum CBD -- products that contain CBD, other cannabinoids and essential oils (terpenes), but zero THC.This last point is especially important for YCBD stock because cbdMD has endorsement deals with several pro-athletes. Arguably, the most well known is two-times Masters champion Bubba Watson. As Watson relayed in an interview, he needed a product that would help with the aging process. He also required a product that would allow him to compete professionally without pinging positive for a drug test.Another reason why YCBD stock deserves a top billing is that cbdMD is headquartered in the U.S. And the American market is wide open for a company to establish a CBD brand, according to cbdMD CEO Marty Sumichrast. Thanks to a comprehensive and effective product portfolio along with key endorsements, YCBD stock is a name you shouldn't ignore. Hexo (HEXO)Source: Shutterstock Among the worst hit marijuana stocks, Hexo (NYSE:HEXO) was trading within the respectable $4 price range in late summer of this year. However, a rash of poor fiscal performances in the sector substantially hurt HEXO stock. And specific to the underlying company, the growing losses in net income have worried investors.As a result, HEXO is now counted among the worst hit marijuana penny stocks. Still, if you've got an iron stomach, I believe this embattled firm has serious upside potential.For one thing, management has earned respect for its forthrightness regarding its unlicensed cannabis production incident. Due to an oversight, Hexo mistakenly produced cannabis in an unlicensed area. However, unlike CannTrust (NYSE:CTST), management reported the incident to governing agency Health Canada. Optically, despite an unfortunate error, I think it is a good look for HEXO stock because of the honesty involved. * 10 Best High-Growth Stocks to Buy for Young Investors Second, Hexo has a joint venture with Molson Coors Brewing (NYSE:TAP) to produce CBD-infused beverages. Experts peg this market to hit over $1 billion by 2022, presenting an opportunity for HEXO stock. CV Sciences (CVSI)Source: Kimberly Boyles / Shutterstock.com Under the best of circumstances, equity shares of small pharmaceutical companies are subject to extreme volatility. Logically, then, marijuana penny stocks that focus on cannabis-based drugs are just as unpredictable, if not more so. And that's the case with CV Sciences (OTCMKTS:CVSI) and CVSI stock.Back when the weed market was still fresh, companies like CV Sciences experienced dramatic surges in valuation. However, with the Street demanding hard results and not merely tantalizing narratives, the cannabis investment sector crumbled.Still, CVSI stock makes a compelling case for itself if you're willing to accept the wildness in its pricing dynamic. One of the company's drugs is a synthetic CBD formulation designed to curb smokeless tobacco use and addiction. With the vaping crisis becoming one of the hot topics earlier this year, CV Sciences' products have incredible relevancy. Cannabis Sativa (CBDS)Source: Shutterstock Like many marijuana penny stocks, Cannabis Sativa (OTCMKTS:CBDS) started off with great promise thanks to its multi-varied brands and businesses. For instance, the company opened up its first "hi Brand International" dispensary in Portland, Oregon. It's also seeking opportunities for expansion into green-friendly states.That said, one of the more intriguing businesses connected to CBDS stock is the skincare market. According to retail cannabis market experts, the CBD skincare market will likely reach $1.7 billion by 2025. That might not sound like a groundbreaking number. However, considering that Cannabis Sativa only made half-a-million dollars last year, this could be a huge prospect for CBDS stock. * These 10 Stocks to Buy Make the Perfect 'Retirement' Portfolio Moreover, speculators should consider the broader implications. Major marijuana stocks, such as Cronos Group (NASDAQ:CRON), are entering the U.S. CBD market via acquisitions like the Lord Jones deal. Of course, Lord Jones is a big CBD skincare brand. Thus, CBDS stock is at least fundamentally moving in the right direction. MariMed (MRMD)Source: Shutterstock If there's one phrase to describe marijuana stocks, it's that this industry represents the perpetual clash between theory and reality. In theory, legal cannabis opened up the door to previously untappable revenue streams. But in reality, the industry suffered from unexpected supply chain issues, stymieing an otherwise unprecedented breakthrough.However, this theory-versus-reality conflict also benefits MariMed (OCTMKTS:MRMD) and MRMD stock. Primarily, MariMed operates as an administrative and operational advisor for the burgeoning cannabis industry. While legalization in North America has brought initial enthusiasm, cannabis-based enterprises are incredibly tough to get up and running. Here, MariMed plays the role of expert consultant, navigating clients away from common pitfalls toward higher probabilities of success.Despite the obvious need for the company's services, that hasn't stopped MRMD stock from turning volatile. In fact, today, it's firmly in the territory of marijuana penny stocks. Still, shares appeared to have stabilized since mid-October, tempting the contrarian approach. MedMen Enterprises (MMNFF)Source: Shutterstock It's almost tragic what happened to MedMen Enterprises (OTCMKTS:MMNFF) recently. Just days ago, MMNFF stock was trading above the all-too-critical $1 threshold. But with the ugly realization that the underlying company could face bankruptcy, shares tumbled below that threshold. Now, it's on this list of very speculative marijuana penny stocks.But can it eventually join the ranks of "regular" marijuana stocks? I'm going to be blunt: MMNFF stock is now one of the riskiest names in the cannabis markets. On the flipside, it does have tremendous upside potential because of this overwhelming risk.In my interview with cbdMD's CEO Marty Sumichrast, he articulated the concept of cannabis branding. When it comes to the retail space, I can't think of a cleaner and more professional brand than MedMen Enterprises. It doesn't try to be an over-the-top weed distributor. Instead, they're focused on quality products and excellent customer service. * 7 High-Yield ETFs to Buy Now Will this be enough to save MMNFF stock? Undoubtedly, this is a gamble, but an interesting one. Diego Pellicer Worldwide (DPWW)Source: Shutterstock If you're looking for the "ultimate" in marijuana penny stocks, then treat yourself to Diego Pellicer Worldwide (OTCMKTS:DPWW). Funny, but true story: I didn't even know about this company's existence until an InvestorPlace reader named Anthony reached out to me and asked me about it. Curious, I researched DPWW stock and I must say it's an intriguing concept.Generally speaking, legal cannabis retailers fall under two camps: those that emphasize the "street image" of the cannabis plant and businesses that cater to therapeutic use. However, Diego Pellicer introduces a third option: premium, luxury-themed cannabis products.Under ideal circumstances, DPWW stock might work out. Making cannabis isn't exactly rocket science. Thus, with supply rising, industry players need a distinguishing brand. Diego Pellicer has that in droves.What it doesn't have, though, is market credibility. DPWW stock currently trades at less than 2 cents. You've been warned.As of this writing, Josh Enomoto is long YCBD, HEXO, and MRMD. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Best Consumer Stocks to Buy Before Black Friday * 9 Tantalizing Dividend Stocks for 2020 * 5 Lottery Stocks With Triple-Digit Upside The post 7 Marijuana Penny Stocks That Have Ridiculous Possibilities appeared first on InvestorPlace.
Hexo Corp (TSX:HEXO) (NYSE: HEXO) said Friday that it decided to respond to false information that has been circling around regarding the licensing at its facility in Niagara, Ontario. In November 2018, prior to the company’s acquisition of Newstrike Brands Ltd, the UP cannabis cultivation facility was licensed by Health Canada. The facility's Block B was included In the license application, and Hexo said it thought Block B was licensed.
HEXO Corp (TSX: HEXO; NYSE: HEXO) (“HEXO” or the “Company”) is providing additional information about licensing at its facility in Niagara, Ontario. In November 2018, prior to HEXO Corp’s acquisition of Newstrike Brands Ltd., the UP Cannabis cultivation facility in Niagara was licenced by Health Canada and production from that facility began shortly after. In October 2018, Health Canada requested additional information for the application, pertaining specifically to the building where Block B is housed.
Amid a cash crunch, Hexo (NYSE:HEXO) stock continues its sell-off. The Gatineau, Quebec-based marijuana producer has seen its cash dwindle as investors have turned on the sector amid oversupply and vaping-related issues. As a result, a company that once came close to becoming profitable now looks more like a sinking ship. Unless and until Hexo stock can improve its cash situation and establish a bottom, investors should stay away.Source: Shutterstock I'm forced to offer a mea culpa on Hexo stock. I had considered HEXO one of my favorites of the non-top-tier marijuana stocks.After all, they have a strong base in their home province of Quebec, which constitutes about 21% of Canada's population. Also, they established an alliance with Molson Coors (NYSE:TAP) to produce cannabis-infused beverages following their recent legalization in Canada. On top of that, they had been on track to turn a profit.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe latest earnings report changed that. HEXO plummeted by 23% in one day as the company dramatically lowered fourth-quarter guidance and withdrew guidance completely for fiscal 2020. * 7 Silver and Gold Stocks to Buy That Offer Contrarian Upside The actual earnings release for the fourth quarter later in the month led to a further decline. The stock price has now fallen by more than 46% in a little more than a month.Outside of the company, the vaping crisis has contributed to its problems. Though the latest evidence points to black-market vape pens, the entire industry has suffered.Moreover, the Canadian market faces a massive oversupply. Thanks in part to high taxes and tight regulation, many consumers continue to turn to the black market. As Josh Enomoto mentioned, illegal weed makes up about 60% of the market. Now, the company ceased production at one facility and took 200,000 sq. ft. offline at its main facility in Gatineau, Quebec. HEXO Low on CashTop executives have left the company, including the CFO, who left soon before Hexo issued guidance. The timing for this is not fortuitous as the company faces a cash crunch. It currently holds about CAD$139.51 million in cash. Since it lost CAD$81.56 million in the last quarter, the company needs to find funding quickly.As Wayne Duggan pointed out, the CAD$70 million it raised through a 7% dilution will not get it through a quarter as its current burn rate. The CAD$30.26 million in long-term debt is not high, considering its CAD$776.76 million in equity.Still, without a dramatic cut in losses, that option appears limited as well. Further, the deal with Molson Coors is not the kind of investment that Constellation (NYSE:STZ) has made in Canopy Growth (NYSE:CGC). Hence, Hexo is not equipped to weather this crisis as well as Canopy or other top-tier weed stocks.Have I given up all hope? Not yet. However, it appears to have entered a "blood in the streets" moment. The question has become whether Warren Buffett-like investors will buy into this crisis. I think maybe, but not yet. Hexo stock trades near its 52-week low. Only rarely are such points a good time to buy. Unless it finds a floor somewhere above $0 per share, investors probably should watch HEXO instead of buy. The Bottom Line on Hexo StockUnless and until the HEXO finds a floor, investors need to stay on the sidelines. The outlook for Hexo stock has turned dramatically negative over the last few months. Hexo look poised to become profitable a few months ago. Its substantial market share in Quebec and deal with Molson Coors appeared to point to a bright future.However, thanks to a marijuana supply glut and concerns over vaping, instead, the company faces a cash crunch. With the Hexo stock price now below $2 per share, further dilution is not much of an option.Also, even with low liabilities, debt financing can only help them sustain quarters like the previous one for a limited time. Hexo is not dead yet. However, if it saves itself, it will not happen without more pain.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Silver and Gold Stocks to Buy That Offer Contrarian Upside * 7 Earnings Reports to Watch Next Week * 5 Online Retail Stocks to Buy on the Dip The post Hexo Stock May Be Fast Approaching Its Blood-on-the-Streets Moment appeared first on InvestorPlace.