quinlash wrote: Considering that HEXO investors are noted as to be presented with "various" items to vote on a Acquisition and/or Merger of the company is within reason to speculate on.
News of any acquisition has yet to be released or eluded to by HEXO Corp however we can easily confirm the potential of such news in the following manner;
#1 - HEXO Shares are Currently Trading at all time Historical Lows.
Prior to consolidation in 2020 HEXO Corp shares traded at a historical high of $11 CDN with a PS-Ratio of 244. Post-Consolidation shares in the company traded at a high of $14 in Feb of 2021 with a PS-Ratio of apx 5. Post Consolidation the all time historical high is $44 CDN
Historical Price Chart for Reference
https://www.theglobeandmail.com/investing/markets/stocks/full-chart/HEXO-T/
#2 - HEXO Trades at a Substantial Discount on a Sales Ratio Compared to Similar Companies within the Sector
While Canopy trades at 8.43 with Tilray at 4.6 we can see HEXO Corp trading at a PS of 1.21
The above can all be confirmed using the following link
https://ycharts.com/companies/HEXO.TO/ps_ratio
#4 - HEXO has multiple HIGH-VALUE components to it that would be of substantial benefit to a new partner / acquiring company.
HEXO Corp has two agreements in place with Molson-Coors while Molson itself is partnered twice with Coke and is also producing energy drinks for Dwayne Johnson "The Rock" under the Zoa Brand.
HEXO Corp has a suite of product offerings that only the largest of producers come close to
HEXO Corp has 9 Supply agreements with Canadian Provinces
HEXO Corp has a medical supply agreement in place with Israel
HEXO Corp has a foothold in the United States with it's Colorado expansion
Which Cannabis Companies can be considered as potential new partners or positioning to buy out HEXO Corp?
#1 - Tilray (TLRY)
Tilray is a Top Tier 1 Licensed Cannabis Producer and has similar product lines as HEXO Corp. A hostile take-over, or straight up offer, to merge with HEXO Corp secures Tilray as the #1 LP in Canada and, without argument, places it well ahead of Canopy Growth as the largest Cannabis LP in the world.
#2 - Canopy Growth (WEED / CGC)
Canopy Growth has competition for the #1 spot as the largest Cannabis Producer in the World from Tilray. A acquistion of HEXO Corp would place it back securely in the #1 position while securing access to HEXO's infused drink offering which handily beat out the Canopy Growth drinks and, to this day, is still outselling Canopy's drinks in all markets.
#3 - Aurora Cannabis (ACB)
Aurora Cannabis has so far failed to secure partnerships with any Fortune 500 companies and has not brought to market any offerings for the Cannabis infused drink market. A merger of Aurora and HEXO would place Aurora back into a position to compete again both Tilray and Canopy Growth.
The list of potential suitors for HEXO Corp certainly extends well beyond the Canadian Producers as we look South of the border and consider the US MSOs. Many large US Corporations have been reported as considering the Cannabis Space as the US moves towards Legalization with the "Buy vs. Build" business model being a favorite within the North American business culture, again laying the crosshairs of acquistion squarely on the largely overlooked HEXO Corp.
While HEXO Corp is itself a Tier 1 Producer within Canada a merger of two Top Tier 1 companies within the Sector will surely put the new combined company well out of reach of all others.
Link Confirming Top Tier Producers
https://www.newcannabisventures.com/canadian-cannabis-lp-tier-1-index/
The dark days for HEXO Corp Investors may come to a abrupt end if and when news of acquistion comes to light for HEXO Corp, in the meantime they await for the new CEO of HEXO Corp to disclose what exactly it is that will be voted on.
Notice: The entireity of the above is original content of StockHouse User Quinlash and can be considered open source / free for distribution by any and all media outlets as well as Social Media Channels.