Zenabis Global Inc. T.ZENA

HEXO Research Links (May 3, 2021)

[quinlash]

Posting for those looking to do some actual research.  HEXO is making a play for Zenabis with the vote occuring on May 13th.  If you are optimistic that the vote will be a YES then Zenabis becomes part of of HEXO and they form the 2nd largest Licensed Producer in Canada.

Below are links to details on the deal and a Presentation outlining what the new combined HEXO / ZENABIS company would look like post-May 13th.



Company Presentations:
 
(Dec 9th, 2020) - Video HEXO Virtually Rolls out New Belleville Facility
https://youtu.be/nhTKnCRhzv4    <<<-- A Must Watch ----<<<<<<
 
2021 ICR Presentation with HEXO CEO (discussion on US expansion into Colorado and beyond)
https://icrinc.touchcast.com/showtime/icr-conference/embed/6a310d2c-3a67-6022-c73f-165d733a591a
 
Note: Starting from minute marker 20:05 the CEO comments on how Coke, Dwayne Johnson “The Rock” and HEXO are connected.  Would recommend watching the entire video from start to finish.
 
Link to HEXO Video Library Showing Inside the Operation
https://www.hexocorp.com/videos/
 
 
HEXO and Related News:
 
(May 3, 2021) - HEXO Corp Announces Repayment of Credit Facility
https://www.globenewswire.com/news-release/2021/05/03/2221193/0/en/HEXO-Corp-Announces-Repayment-of-Credit-Facility.html
 
Taken From Above News Release
 
“We believe repayment of the credit facility provides HEXO with flexibility as we continue to execute on our US expansion plans and our goal to become a top two Canadian LP by adult-use recreational cannabis sales,” said HEXO CEO and co-founder Sebastien St-Louis. “We would like to thank our lenders for their support, which has contributed to HEXO’s success to date.”
 
(Apr 28, 2021) – HEXO Corp receives Control Union Medical Cannabis Standard GACP certification
https://www.globenewswire.com/news-release/2021/04/28/2218430/0/en/HEXO-Corp-receives-Control-Union-Medical-Cannabis-Standard-GACP-certification.html
 
Taken From Above News Release:
CUMCS-GACP certification represents a standard of quality and consistency for cannabis propagation, cultivation and post-harvest processes and is compliant with both the World Health Organization and European Medicines Agency Good Agricultural and Collection Practice guidelines
 
(Apr 21, 2021) – HEXO Wins 2021 Atomic Award
https://atomicawards.strategyonline.ca/winners/winner/2021/?e=110149&n=Veryvell
 
(Apr 15, 2021) - HEXO Corp Announces Filing of $1.2B Preliminary Base Shelf Prospectus
https://www.globenewswire.com/news-release/2021/04/15/2211308/0/en/HEXO-Corp-Announces-Filing-of-1-2B-Preliminary-Base-Shelf-Prospectus.html
 
Taken From Above News Release:
“We made the decision to file this new base shelf prospectus and registration statement to provide maximum flexibility as we continue to pursue strategic initiatives in both the United States and Canada,” said HEXO CEO and co-founder Sebastien St-Louis. “We have now started to deploy capital in the United States, are remaining active in M&A and are in ongoing discussions with potential non-beverage CPG partners which we expect will require additional capital as we continue to execute on our growth and expansion strategy.”
 
(Apr 14, 2021 – HEXO / Molson JV – Truss Launch New Drinks for Summer
https://www.benzinga.com/markets/cannabis/21/04/20621085/molson-coors-hexo-cannabis-jv-truss-beverage-to-launch-six-new-products-this-summer
 
(Apr 8, 2021) HEXO’s Partner Molson Coors Nominates Julia M. Brown as an Independent Director to Join Its Board of Directors
https://ir.molsoncoors.com/news/press-release-details/2021/Molson-Coors-Nominates-Julia-M.-Brown-as-an-Independent-Director-to-Join-Its-Board-of-Directors/default.aspx
 
Note:  As outlined in the news out from Molson, Mrs. Brown has been previously employed with Mars-Wrigley as well as Kraft Foods.
 
(Apr 6, 2021) – HEXO Launches Bake Sale – New Cannabis Baking Flower
https://www.globenewswire.com/news-release/2021/04/06/2204803/0/en/HEXO-launches-first-of-its-kind-Bake-Sale-value-brand.html
 
(Mar 31, 2021) Zenabis 2020 Q4 Year End Quarter Report (Bloomberg)
https://www.bloomberg.com/press-releases/2021-04-01/zenabis-announces-full-year-and-fourth-quarter-2020-financial-results
 
(Mar 26, 2021) – HEXO CFO Trent McDonald Hosts Reddit Ask-Me-Anything (AMA) Session
https://www.reddit.com/r/TheCannalysts/comments/m8rljy/hi_this_is_trent_macdonald_cfo_of_hexo_corp_ill/
 
Note: Trent addressed a number of topics from US Expansion to what a US Strategy would look like.  He also noted how undervalued the stock is in relation to others in the industry based on sales (this compares to sharecount vs sales dollars, PS-Ratio math helps explain what he is referring to)
 
(Mar 18, 2021) – HEXO Reports 2021 Q2 Results
https://www.globenewswire.com/news-release/2021/03/18/2195226/0/en/HEXO-Corp-announces-positive-adjusted-EBITDA-and-94-increase-in-net-revenue-from-prior-year.html
 
Note: HEXO Achieved positive adjusted EBITDA, along with the seventh consecutive quarter of adjusted EBITDA improvement.   This is a milestone yet to be achieved by Canopy Growth or Aurora Cannabis
 
(Mar 18th, 2021) HEXO - Earnings Call Transcripts (2021 Q2 Report)
https://news.alphastreet.com/hexo-corp-hexo-q2-2021-earnings-call-transcript/
 
(Feb 22, 2021) – HEXO and Namaste Tech Sign Agreement for New Product Releases
https://www.globenewswire.com/news-release/2021/02/22/2179988/0/en/Namaste-Technologies-Subsidiary-CannMart-Signs-National-Supply-Agreement-with-HEXO.html

(Feb 16, 2021) – HEXO to Acquire Zenabis
https://www.globenewswire.com/news-release/2021/02/16/2176435/0/en/HEXO-Corp-to-acquire-Zenabis-Global-Inc.html
 
Note: The Zenabis deal is valued at $235 Million CDN however requires no cash outlay by HEXO to complete as it is being performed on a share conversion of .01772 of one HEXO share for each Zenabis Share.  Post-merger Zenabis products, sales and debts owing will move to HEXO.
 
HEXO PowerPoint / PDF Summary Presentation Regarding Zenabis Deal
https://www.zenabis.com/wp-content/uploads/slider/hexo-corp-project-zebra_2021-03-25_12_10_21/hexo_corp.pdf?fbclid=IwAR0FlnKRYtEoOPfI0y6BKEgGN04sNV8HMzc7zYYmF4_5w1zOdoWTe_Oxv1c
 
NOTE:  Presentation compares HEXO to other major players including the Aphria / Tilray combined operation and shows HEXO becoming a top three producer in the Canadian Market.  Comparisons to the overall North American market are not included.
 
(Feb 2, 2021) - HEXO Book Launch 
Link to Book Released on Amazon.CA outlining the story of HEXO (listed as Top-Seller)
https://obj.ca/article/local/book-excerpt-billion-dollar-start
 
(Jan 13, 2021) Truss CBD USA, a HEXO Corp and Molson Coors joint venture, launches Veryvell sparkling CBD water in Colorado
https://www.globenewswire.com/news-release/2021/01/13/2158006/0/en/Truss-CBD-USA-a-HEXO-Corp-and-Molson-Coors-joint-venture-launches-Veryvell-sparkling-CBD-water-in-Colorado.html
 
(Jan 1, 2021) Link to Molson / Dwyane Johnson "The Rock" Partnership
https://www.msn.com/en-us/money/smallbusiness/dwayne-the-rock-johnson-partners-with-molson-coors-for-nonalcoholic-energy-drink/ar-BB1cEP6r
 
(Dec 22, 2020) HEXO News Release Referencing the No Need to Raise Additional Capital (HEXO Corp Announces Lapse of Base Shelf Prospectus)
https://www.globenewswire.com/news-release/2020/12/22/2149236/0/en/HEXO-Corp-Announces-Lapse-of-Base-Shelf-Prospectus.html
 
Taken from Above News Release:
 
“In light of our solid financial position, and most notably our excellent liquidity and cashflow position, we do not see the need to conduct further rounds of financing in the near future.”
 
Dec 23, 2020 – HEXO Completes 4:1 Stock Consolidation.
HEXO consolidated shares at a ratio of 4:1 on Dec 23, 2020 in order to comply with NYSE minimum listing requirements.  Current outstanding shares is now apx 122 Million.
 
NOTE:  HEXO now has one of the lowest outstanding share counts in the entire Cannabis Sector
 
(July 2020) HEXO established a Medical Cannabis Supply contract with Israel
Link to HEXO NR on Israel Supply Agreement
https://www.globenewswire.com/news-release/2020/07/09/2059798/0/en/HEXO-launches-medical-cannabis-products-in-Israel.html
 
(Sept 9, 2020) Link to Molson / Coke Deal
https://www.msn.com/EN-US/money/companies/molson-coors-to-bring-coke-s-alcoholic-topo-chico-to-u-s/ar-BB19xmoa
 
(Aug 1, 2018) Molson Coors Canada and HEXO Announce Agreement to Create Joint Venture Focused on Non-Alcoholic, Cannabis-Infused Beverages for the Canadian Market
https://www.newswire.ca/news-releases/molson-coors-canada-and-hexo-announce-agreement-to-create-joint-venture-focused-on-non-alcoholic-cannabis-infused-beverages-for-the-canadian-market-689719921.html
 

Research Links:
 
HEXO - Price to Sales Ratio Data
https://ycharts.com/companies/HEXO.TO/ps_ratio
 
Investopedia Link on How to use PS-Ratio
https://www.investopedia.com/articles/fundamental/03/032603.asp
 
NOTE:  HEXO PS-Ratio is apx 1/3 of Canopy Growth.  Both companies have the same product mix, international deals, offer Rec and Med products etc and the best comparison stock for HEXO.
 
HEXO Daily Shareprice Data
https://ca.finance.yahoo.com/quote/HEXO.TO/history/
 
HEXO - Investor Relations Homepage - Quarter Reports (Also see www.sedar.com for more details)
https://www.hexocorp.com/investors/

[Jimmy713]

You are a good man ... Thanks for sharing.

[mydogchach]

And thank YOU little jimmie. Say jimmie - I know that you're a big pumper for Sundial, not sure why - but you post about them all the time. Hey remember when Hexo paid Sundial $20 million - just to pay off Zena's debt - well, now Sundial made $16 million in one day! Maybe you were right to pump Sundial after all. $36 million for doing nothing - you could pay SSL for THREE YEARS with that

[quinlash]

[mydogchach]

What Is Pump-and-Dump? Pump-and-dump is a scheme that attempts to boost the price of a stock through recommendations based on false, misleading, or greatly exaggerated statements. The perpetrators of this scheme already have an established position in the company's stock and sell their positions after the hype has led to a higher share price.