Newstrike Brands Ltd NWKRF

RE:👆H👆E👆O👆X👆

[Bigbaboon]

Molson serving medical beer... come in mozzy, you can do better than that... st-louis said on multiple occasions that he doesn’t intend to increase medical customer base.

mozzarella wrote:

Hexo: 92.1% recreational, 8.8% medical

Next to Aurora Cannabis selling more medical marijuana than adult-use pot, perhaps the biggest surprise was HEXO (NYSEMKT:HEXO) generating 91% of sales in its most recent quarter from the recreational market.

To some degree, a lean toward the adult-use side of the equation is expected. In April 2018, HEXO landed the biggest aggregate supply deal to date -- a five-year, 200,000-kilo supply agreement with its home province of Quebec, with an option for a sixth year. Prior to announcing its Newstrike Brands acquisition in March, this supply deal was slated to gobble up about 40% of HEXO's production through 2023, with Quebec using this output for adult-use sales. Even after the Newstrike deal brings HEXO up to 150,000 kilos of peak output annually, around 30% of its production through 2023 will wind up heading to Quebec's recreational market.

But make no mistake about it, HEXO's medical revenue should rise. That's because it and Molson Coors Brewing formed a joint venture last year to develop nonalcoholic cannabis-infused beverages. This partnership, known as Truss, will begin selling beverages in the fall, when a number of derivatives get the green light from Health Canada. Since these alternative cannabis options bear higher price points and are more likely to be purchased by medical patients, HEXO's reliance on the medical pot community would be expected to grow.