HEXO stock is gaining solid momentum in Tuesday's session after HEXO Corp (TSX:HEXO) (NYSE:HEXO) hired a U.S.-based Chief Financial Officer.
HEXO Expansion Efforts In The U.S.
The last week has been an eventful one for Quebec-based cannabis company HEXO. In the previous week, the company completed the acquisition of Newstrike Brands for $263 million and now they have announced the appointment of a well respected Chief Financial Officer in the form of Michael Monahan. Monahan, who is scheduled to start on June 17th this year, had earlier served in the same position for Nutrisystem, a health and fitness program provider. In March, Nutrisystem was sold for $1.3 billion.
This morning, HEXO Corp had also announced the formation of Hexo USA, its U. S. subsidiary based out of Delaware. It is important to point out that HEXO listed on the New York Stock Exchange earlier in 2019. Monahan would be engaged in HEXO’S expansion efforts in the United States.
HEXO stock is up 5.77% and now selling at $7.15 on the NYSE. On the Canadian side, HEXO stock is trading at $9.61, up by 2.90%.
HEXO Stock: The Larger Picture
Other than the recent developments within the company, it is worthwhile to have a look at the larger picture. HEXO stock has been one of the best performing cannabis stocks for the past two years and during this time, it has generated returns to the tune of 500% for those who stuck in there.
One of the most important aspects of HEXO’S growth has been the deals that it has managed to make over the years. Back in April 2018, HEXO struck a deal that constituted that biggest single province supply deal in the history of the cannabis industry in Canada so far. According to the provisions of the deal, 200,000 kilos of cannabis were to be supplied annually to Quebec. The deal is locked in for five years, but HEXO has the option to extend it by a year.
However, that was not all. In August last year, it had entered into a joint venture named Truss with Molson Coors Brewing to create cannabis-infused beverages. HEXO has a 42.5% stake in the venture. The beverages in question, which are non-alcoholic in nature, are expected to hit the stores at some in October this year, pending approval from Health Canada and the impending legalization of CBD-infused products.
HEXO stock has gained over 35% so far in 2019.
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