quinlash wrote: 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.
Recent Company News:
(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 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/
(Mar 26, 2021) Link to Power of Wealth (POW) Group Video - CFO AMA Call Recap
https://www.youtube.com/watch?v=Jh3cmoiyrus
(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
Key Financial & Operating Highlights
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
Total net revenue increased to $32.8M, up 94% from the prior year quarter (“2Q20”) and 12% from the first quarter of fiscal 2021 ended October 31, 2021 (“1Q21”).
Non-beverage Canadian adult-use revenue increased by 72% from 2Q20
Adult-use net revenue increased by 10.5% in 2Q21, marking the fifth consecutive quarter of growth.
Maintained number one position for market share in Quebec while increasing adult-use net revenues in the rest of Canada to 49% of the Company’s sales composition, up from 44% in 1Q21.
Gross revenues for the UP Cannabis brand increased to $3.2M, representing 8% of total adult-use, non-beverage gross revenue in 2Q21 vs under 1% in 1Q21 due to the successful relaunch of the UP brand in late 1Q21.
Brand mix, including the UP Cannabis brand, boosted non-beverage adult-use gross margin to 37%, up from 36% in 1Q21.
Maintained the number one position in the beverage category with net revenue increasing 11% over 1Q21.
Operational cash use of ($2.9M) for the quarter, and ($8.1M) over the past three quarters combined, not including non-cash working capital items.
Due to HEXO’s ongoing success, the Company has never qualified for the Government of Canada’s COVID-19 related emergency response programs, such as the Canada Emergency Wage Subsidy (CEWS). Conversely, several of the Company’s competitors have received tens of millions of dollars, all of which has been included in their operational cash flows
(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
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.
(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, totaling 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
(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
Zenabis Quarter Report Summary / Highlights
Full Year 2020 Highlighted Financial Results
* Consolidated net revenue increased 95% to $59.3 million from $30.4 million in 2019;
* Gross margin before fair value changes to biological assets and inventories was $24.8 million or 41.8% of net revenue in 2020, compared to $13.7 million or 44.9% of net revenue in the prior year;
* Consolidated Adjusted EBITDA for the year totaled $3.5 million, compared to negative $38.7 million in 2019;
* Loss from operations of $2.3 million compared to $59.2 million in the prior year;
* Consolidated net loss from continuing operations totaled $54.9 million or $0.10 per share, fully diluted, compared to $72.6 million or $0.30 per share, fully diluted, in 2019;
* Consolidated net loss for 2020 totaled $70.5 million or $0.13 per share, fully diluted, compared to $127.0 million or $0.53 per share, fully diluted, in 2019;
* Loans and borrowing decreased $88.2 million from $153.9 million to $65.7 million;
* Net cash used in operations was $17.5 million compared to $78.6 million in 2019.
HEXO 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
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"
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.
HEXO quickly overtook Canopy Growth after the initial release of drinks in Canada. As part of the March 18th, 2021 QTR Report, HEXO reiterated that they are maintaining the number one spot in Canada for drinks and sales are progressing well in Colorado.
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
.
Molson has partnered with Coke to rollout a Mexican 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
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/
(Mar 18th, 2021) HEXO - Earnings Call Transcripts (2021 Q2 Report)
https://news.alphastreet.com/hexo-corp-hexo-q2-2021-earnings-call-transcript/
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
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 126 Million.
NOTE: HEXO now has one of the lowest outstanding share counts in the entire Cannabis Sector
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
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. (Ticker symbol: ZENA)