RE:From Today's News That's also how I read it. The problem is that the news release doesn't help us quantify what the bottom line impact might be. The missing piece of information is on what basis will HEXO be remunerated and how much will itbe sharing with its partner.
Is it a percentage of revenue, or based per order, or weight? And what volumes are anticipated out of the total consumption in Quebec. It's a bit like the Molson JV - it sounds positive (and it is), but without the full facts its a little difficult to re-price the SP.
Of course, I understand the limitations that HEXO has in making a PR that includes forecasts - so I am not blaming them. I am just trying to explain the lack of SP pop. In any event I think the Tilray madness has overshadowed any good news, which is a pity.
Still, when investors stop to look at the release this evening, and let is sink in, there may be a positive reaction in the morning. From my perspective, it is good to have a further string to the bow in the 'traditional' area of cannabis, outside of any beverage/pharma deals etc. There is also the bonus, don't forget, that this partnership will improve margins for HEXO because it will be paying itself to distribute its own product!