quinlash wrote: Companies such as HEXO Corp are taken over by larger producers or Corparations looking to enter the sector for numerous reasons, some examples of this include;
- Existing supply contracts as HEXO has with 9 Canadian Provinces and the country of Israel.
- Joint Venture agreements / partnerships with large players, as HEXO has with Molson Coors (twice) for drinks. Molson itself is a Fortune 500 Company.
- Solid branding - HEXO has the UP! and Truss Brands, Original Stash and others, all of which are doing well and have brand loyality established within the Market.
- Patented Technology. HEXO has the 2nd largest number of patents in the sector for technology such as infused drink and edibles production as well as mass production patents for building these products in high volume.
- Location Location Location... HEXO is headquartered in Canada which is fully legalized for both Medican and Rec Cannabis as well as CBD and THC Product development and sale of these products. US Based companies looking to enter the sector could purchase HEXO Corp, develop and test products within Canada and be ideally suited ahead of US Legalization.
If you are not familiar with business practices you should do some research however take overs such as what is described is common place in North America and often come unannounced to investors and traders alike.
DYODD
Q
quinlash wrote: HEXO has two Joint Ventures with Molson Coors for the production and distribution of infused drinks in both Canada and the United States. Those products are already available in 17 US States and with access to Molson's Network they can be expected to go Global.
HEXO is a prime target for a takeover by one of the larger Cannabis LPs IMHO, that or a large US corporation looking to enter the Cannabis Sector.
The price will be the price, it is set by the market however I am not worried about HEXO as an investment as either the market will provide better pricing or a takeover bid will.
JMHO
Q
Long on HEXO