quinlash wrote:
Company Presentations:
(Dec 9th, 2020) - Video HEXO Virtually Rolls out New Belleville Facility
https://youtu.be/nhTKnCRhzv4 <<<-- A Must Watch ----<<<<<<
(Dec 15th, 2020) - Interview with HEXO CEO Regarding 2021 Q1 Earnings - Looking Forward
https://finance.yahoo.com/video/hexo-ceo-earnings-cannabis-industry-153825537.html
Recent Company News:
(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
Taken from Article:
“..expect new products from HEXO to become available in March 2021 on an ongoing basis“
(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
(Feb 16th, 2021) Yahoo News Article Regarding Zena Acquisition
https://finance.yahoo.com/news/hexo-corp-acquire-zenabis-global-162600954.html
Taken from Above Article:
"The Transaction was unanimously approved by the board of directors of each of HEXO and Zenabis (in the case of Zenabis’ board of directors, after receiving the unanimous recommendation of a special committee formed for purposes of the Transaction), and Zenabis’ board of directors unanimously recommends that its shareholders vote in favour of the Transaction"
Transaction Highlights
- Strengthened domestic brands: Based on HEXO’s and Zenabis’ most recent interim quarterly financial statements and results, and those of the other top licensed producers in Canada, the combined organization would be a top three licensed producer in terms of combined Canadian recreational cannabis sales.
- Foothold in Europe: The Transaction gives HEXO immediate access to the European medical cannabis market through Zenabis’ local partner, with an established facility in the European Union supplying pharmaceutical products to the European market. The facility also serves as a European Union Good Manufacturing Practice packaging and distribution centre for medical cannabis products produced in Zenabis' Atholville Facility.
- Accretive synergies: HEXO estimates that the combined entity may realize annual synergies of approximately $20 million within one year of close, through cost of goods reductions, additional capacity utilization in HEXO’s Belleville Centre of Excellence and selling, general and administrative savings, which, if realized, should allow HEXO to continue its path towards positive earnings.
- Capacity boost with state-of-the-art cultivation infrastructure: The proposed Transaction would give HEXO access to licensed capacity to produce approximately 111,200 kg of additional high-quality cannabis annually. The Transaction would result in HEXO acquiring two indoor facilities (approximately 635,000 sq. ft.) and access to a 2.1 million sq. ft. greenhouse facility, totalling approximately 2.735 million sq. ft. of near-term cultivation space offering diversified growing and production techniques. This provides a platform for growth and foundation from which to strengthen and diversify our portfolio of brands.
(Feb 8, 2021) - HEXO Corp appoints General Manager of US operations
https://www.globenewswire.com/news-release/2021/02/08/2171186/0/en/HEXO-Corp-appoints-General-Manager-of-US-operations.html
(Jan 21, 2021) – HEXO Registers “Powered By HEXO" in the European Union
https://www.globenewswire.com/news-release/2021/01/21/2161977/0/en/European-Union-Intellectual-Property-Office-grants-Powered-by-HEXO-registered-trademark-status.html
(Jan 13, 2021) – HEXO Officially Launches Drinks 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
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.
Dec 14th - 2020 Q1 - Earnings Call Transcript
https://news.alphastreet.com/hexo-corp-hexo-q1-2021-earnings-call-transcript/
HEXO’s CEO has been forecasting the company to turn EBITDA positive on the upcoming report in March of 2021. QTR report is expected no later than March 17th, 2021 as per HEXO FAQ section on their homepage.
Dec 14th, 2020 - 2021 Q1 QTR Report
https://staticproduction.s3.amazonaws.com/financial-statements/2021/Q1+FY21+Interim+Financial+Statements+FINAL.pdf
Note: HEXO's report on Dec 14th, 2020 (the 2021 Q1 Report) showed an EBITDA gap of only 420k and a record high for sales with their share of the drink market overtaking Canopy Growth.
Link to News Regarding Canopy Growth Head of Drinks Departing and HEXO market share
https://420intel.com/articles/2020/12/11/canopy-growth-beverage-head-depart-amid-sluggish-drink-sales
Taken from HEXO 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"
Link to full News Release Referencing the No Need to Raise Additional Capital
https://www.globenewswire.com/news-release/2020/12/22/2149236/0/en/HEXO-Corp-Announces-Lapse-of-Base-Shelf-Prospectus.html
HEXO is Partnered with Molson-Coors-Beverages to form a JV Company called Truss. They have two JVs with Molson now, one for Canada and one for the US. The Canadian JV is called TRUSS, while the US JV is called TrussCBDusa
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Molson has also partnered with Coke to rollout a Mexician drink into the US. No mention by Molson or HEXO if something more will develop with Coke for the Cannabis space.
Molson recently teamed up with Dwayne Johnson (“The Rock”) to sell Energy Drinks
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
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
International Deals:
(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
Research Links:
HEXO - Price to Sales Ratio Data
https://ycharts.com/companies/HEXO.TO/ps_ratio
Note: HEXO average PS ratio is 55 and has an all time high of 244, with a shareprice of $10.00 CDN HEXO's PS-Ratio is only 9.25
HEXO - Daily Shareprice Data
https://ca.finance.yahoo.com/quote/HEXO.TO/history/
HEXO - Investor Relations Homepage - QTR Reports (Also see www.sedar.com for more details)
https://www.hexocorp.com/investors/
(Dec 14th, 2020) HEXO - Earnings Call Transcripts (2021 Q1 Report)
https://staticproduction.s3.amazonaws.com/financial-statements/2021/Q1+FY21+Interim+Financial+Statements+FINAL.pdf
(Dec 14th, 2020) HEXO - 2021 Q1 Call Transcript
https://news.alphastreet.com/hexo-corp-hexo-q1-2021-earnings-call-transcript/
NOTE: HEXO 2021 Q2 Report expected no later than March 17th, 2021 (as per their homepage)
Other News:
(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 22, 2021) – HEXO issued a recall for three versions of its Vape Pens which affected apx 100,132 pens that were sold in Canada.
Link to Details on Units Recalled, with quantities
https://healthycanadians.gc.ca/recall-alert-rappel-avis/hc-sc/2021/74809r-eng.php
No NR was issued for this and the company was quoted as saying the following:
“As an immediate corrective action, Hexo has implemented enhanced third-party hardware approval criteria including the use of an independent third-party accredited lab to assess all devices under consideration,” Shannon McCoy, Hexo vice president of quality, wrote in a statement emailed to MJBizDaily."
"Hexo expects the financial impact of the voluntary recall to be minimal, and well within the normal course of business,” McCoy added, without specifying the exact number of recalled vape pens."
Link to Source used for above comments by HEXO Corp
https://www.popularhemp.com/2021/01/21/latest-canadian-cannabis-recalls-include-melting-vape-pens-moldy-bud/#:~:text=Hexo%E2%80%99s%20recall%2C%20announced%20Jan.%2012%20by%20the%20Ontario,Saskatchewan%20as%20well%20as%20to%20medical%20cannabis%20clients.
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. Since that date the stock price has more than doubled. All charts, research sites etc are now showing revised pricing based on consolidation ratio (this includes 52 week high / low numbers)
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The new outstanding share count now sits at just 122.6 Million Shares. The CEO notes that he sees no need to issue further shares to raise funds
Link to share count data:
https://stockhouse.com/companies/quote?symbol=t.hexo
Ways to Trade:
HEXO Shares Trade on both the Canadian TSX and US NYSE under the ticker symbol: HEXO
Stock Warrants available for HEXO shares trade on the TSX under ticker symbol: HIP-WT-A
Note: Last update by HEXO on these warrants can be found in the FAQ section of their homepage and indicates that these warrants will have a .01583 conversion being applied for the exercise from warrants to HEXO shares.
Both HEXO and ZENA Boards of Directors have voted in favor of the HEXO acquisition of ZENA. ZENA shares will convert over to HEXO shares once the merger is voted through by ZENA shareholders at a conversion ratio of .01772. The date for this vote has yet to be disclosed. However if you are optimistic that the deal will be approved you can purchase ZENA shares for later HEXO conversion. (Ticker symbol: ZENA)
Disclosure:
Stockhouse User Quinlash recommends HEXO as a BUY and HOLD stock for those with 1 year + trading timeline and for those who can ride out the daily ups and downs seen in the Cannabis Sector. Quinlash holds a long position in both HEXO shares as well as HIP-WT-A and ZENA shares.