HEXO stock is trading green today after HEXO Corp (TSX:HEXO) (NYSE:HEXO) becomes the first cannabis company to join the Food and Consumer Products of Canada (FCPC).
This accomplishment is one to take notice of, as Canada is set to legalize edible cannabis products later this year. With its partnership with Molson Coors Brewing Co. (NYSE:TAP), HEXO is positioning itself to be a key leader in the cannabis food industry.
HEXO Stock: HEXO First in the FCPC
The Food and Consumer Products of Canada is the largest voice of the Canadian food, beverage, and products industry. The FCPC seeks to help its members deliver safe and affordable products to consumers. HEXO being the first to join the organization puts itself in a great position moving forward with its ongoing cannabis beverage venture.
HEXO Corp states it will be meeting with FCPC members in the next coming months, in hopes to gain more interaction with industry leaders. The cannabis company is already working with Molson Coors, one of the older and second-largest brewers by volume in Canada. Currently, Molson Coors sells around one-third of the total Canadian Beer market. This large partnership makes HEXO stock one of the most undervalued stocks in the cannabis industry.
HEXO Corp and Molson launched Truss back in October of 2018. Truss is the joint venture between the two companies to develop non-alcoholic, cannabis-infused beverages for Canada.
Brett Vye, Chief Executive Officer at Truss, said:
“When consumable cannabis is legalized in Canada, Truss will be ready to make its mark as a responsible leader in providing high-quality beverages for the Canadian consumer.”
HEXO Stock Undervalued
At the time of writing, HEXO is trading at $7.58 a share on the TSX, up +$0.17 (+2.29%). On the NYSE American, HEXO stock is trading at $5.67 a share, up +$0.12 (+2.08%).
The company is expecting a six-figure yield by year-end and is already supplying Quebec with over 200,000 kilos of marijuana over the next five years. The company is making strong movements in Canadian cannabis production and distribution, but the Molson Coors deal is what sets the company apart from the rest. HEXO’s recent induction in the FCPC further confirms its strong stance in the emerging cannabis edibles industry in Canada.
When cannabis edible products are approved by the Canadian parliament later in the year, HEXO will hit the ground running in the industry and likely blow all its competitors away. For this reason, HEXO stock is one to watch in 2019.
What do you think?
Featured Image: Canva