Review of HEXO Comments on Need for Cash For the benefit of those who failed to read anything published by the company...
Below are highlighted to two most recent sections of the News Releases published by the company, regarding financing. In one the company states clearly.. " No Need to Raise Capitial.. NEAR TERM". The one from yesterday states.. OPPORTUNITIES FOR US EXPANSION.
Everytime the company issues news... READ THE NEWS !
*lol* .. kids.. they make me laugh sometimes :P I'll make this look like a coloring book so they can relate better...
Q
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.
HEXO and Related News:
(Apr 15, 2021) - HEXO Corp Announces Filing of $1.2B Preliminary Base Shelf Prospectus
https://www.globenewswire.com/news-release/2021/04/15/2211308/0/en/HEXO-Corp-Announces-Filing-of-1-2B-Preliminary-Base-Shelf-Prospectus.html
Taken from Above News Release
We made the decision to file this new base shelf prospectus and registration statement to provide maximum flexibility as we continue to pursue strategic initiatives in both the United States and Canada,” said HEXO CEO and co-founder Sebastien St-Louis. “We have now started to deploy capital in the United States, are remaining active in M&A and are in ongoing discussions with potential non-beverage CPG partners which we expect will require additional capital as we continue to execute on our growth and expansion strategy.”
Q-Note... Are you seriously going to complain about HEXO doing further expansion into one of the world's largest markets for Cannabis ??? Give you head a shake children, having more customers... equals a GOOD thing
(Apr 14, 2021 – HEXO / Molson JV – Truss Launch New Drinks for Summer
https://www.benzinga.com/markets/cannabis/21/04/20621085/molson-coors-hexo-cannabis-jv-truss-beverage-to-launch-six-new-products-this-summer
(Apr 8, 2021) HEXO’s Partner Molson Coors Nominates Julia M. Brown as an Independent Director to Join Its Board of Directors
https://ir.molsoncoors.com/news/press-release-details/2021/Molson-Coors-Nominates-Julia-M.-Brown-as-an-Independent-Director-to-Join-Its-Board-of-Directors/default.aspx
Note: As outlined in the news out from Molson, Mrs. Brown has been previously employed with Mars-Wrigley as well as Kraft Foods.
(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 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
(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/
Note: Trent addressed a number of topics from US Expansion to what a US Strategy would look like. He also noted how undervalued the stock is in relation to others in the industry based on sales (this compares to sharecount vs sales dollars, PS-Ratio math helps explain what he is referring to)
(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
Note: HEXO 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
(Mar 18th, 2021) HEXO - Earnings Call Transcripts (2021 Q2 Report)
https://news.alphastreet.com/hexo-corp-hexo-q2-2021-earnings-call-transcript/
(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
Note: The Zenabis deal is valued at $235 Million CDN however requires no cash outlay by HEXO to complete as it is being performed on a share conversion of .01772 of one HEXO share for each Zenabis Share. Post-merger Zenabis products, sales and debts owing will move to HEXO.
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 and shows HEXO becoming a top three producer in the Canadian Market. Comparisons to the overall North American market are not included.
(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 1, 2021) 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
(Dec 22, 2020) HEXO News Release Referencing the No Need to Raise Additional Capital (HEXO Corp Announces Lapse of Base Shelf Prospectus)
https://www.globenewswire.com/news-release/2020/12/22/2149236/0/en/HEXO-Corp-Announces-Lapse-of-Base-Shelf-Prospectus.html
Taken From Above News Release
“We are also progressing on the path of becoming cash-flow positive from our operations.” said HEXO CFO, Trent MacDonald. “We continue to hold the number one position for market share in Quebec, while continuing to aggressively expand into other markets and are now top four in adult-use market share by net sales dollars in Canada. We have also moved into the top beverage spot through Truss, our joint venture with Molson Coors, and have reached the number one market share position for hash, which we believe will continue to be an important category for the industry. 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.”
Q-Note: The above was stated in Dec of 2020, we are now in April, and in Jan the US stated that it is looking at legalizing Cannabis in 2021. IMHO HEXO is preparing itself in the event that the US makes progress in it's Cannabis Legalization efforts and more opportunities present itself for the HEXO operation to indeed do more business in the United States.
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
(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
(Sept 9, 2020) 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
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/
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)
Disclaimer: StockHouse user Quinlash holds long positions in both HEXO and Zenabis.