HEXO Corp. (TSX:HEXO) (NYSE:HEXO) is making a splash this week after announcing a few key victories that have investors impressed. HEXO stock is on an upswing moving into the tail-end of the week and is now on our the list of top pot stocks to watch.
HEXO Increases Production Capacity
This morning, HEXO Corp announced the acquisition of Newstrike Brands Ltd (TSXV:HIP) for around $236 million. This transaction was unanimously approved by the board of directors from both companies.
This is a positive step for HEXO, as the acquisition gives the cannabis company the ability to produce around 150,000 kgs of high-quality cannabis a year. With HEXO’s Newstrike acquisition, the cannabis company has access to four cutting-edge production campuses totaling close to 1.8 million square feet. Some of these campuses are indoor grow facilities, diversifying HEXO’s growing techniques and positions.
In addition to the increase in production space and diversification of growing, HEXO now has distribution agreements in eight Canadian provinces. This news alone is why HEXO stock is on our list of pot stocks to watch! Now more than ever, Canadians will have access to HEXO’s brand of cannabis products.
Yesterday, HEXO released news that it is the first cannabis company to enter into 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. The cannabis company is now performing on all cylinders in both the marijuana and hemp sector of the cannabis industry.
2019 might be the year for HEXO, as it seems it came to compete with the major pot stocks on the market.
HEXO Stock Undervalued?
With its recent announcements, HEXO is looking to be one of the most undervalued stocks on the market. The pot stock is currently trading on the NYSE at $5.87 a share, up +$0.29 (+5.20%). On the TSX, HEXO is trading at $7.72 a share, up +$0.32 (+4.32%).
With its new acquisition, HEXO will now be able to produce over 150,000 kgs of cannabis annually. Its joint deal with Molson Coors (NYSE:TAP) for CBD-infused beverages puts the company well ahead of many other cannabis companies regarding this type of edible product.
Featured Image: Canva