Formerly known as The Hydropothecary, Hexo Corp (TSX:HEXO) is in the green on the index today. Currently up 2.57% and selling for $5.98 CAD, Hexo stock is moving up the charts... albeit slowly.
Let's take a look at the potential in this company.
Hexo Stock
With a market cap of $1.17 billion, Hexo is not as big as, say, Aurora (NYSE:ACB) or Canopy Growth (NYSE:CGC), that's a given. But the company is in good shape none-the-less. For one thing, its capacity is pretty impressive—Hexo is expecting to be able to produce 108,000 kgs of cannabis by the end of 2018. If it manages this, it will rank as the fourth largest marijuana producer in Canada.
Maybe Hexo stock will edge a little higher again at that point.
Hexo Corp: King of Quebec
For a smaller company, keeping up with the big guys is no easy feat. After all, you have to be able to produce the goods in this game, and Hexo is doing it.
Especially in its home province of Quebec. It landed a whopper deal with the province in April, which gave it a 35% market share in Quebec's recreational marijuana market. It was the largest forward-supply contract in the history of the cannabis industry.
Also impressive.
But the company is making sure to have distribution channels across the country too, and secured supply deals in four other provinces. Importantly, Ontario is on that list—Canada's biggest provincial market for recreational marijuana.
>> Hemp News: Whole Foods Predicts Hemp to Gain Popularity in 2019
Hexo Stock and Beer
Hexo has managed to be only one of two Canadian marijuana producers picked to cozy-up with a major alcoholic drinks company. Molson Coors Brewing (NYSE:TAP) has selected Hexo to be its partner to develop cannabis-infused drinks. Business will kick-off in one year's time. This deal places Hexo at the forefront of this market, only to be rivaled by the Canopy Growth and Constellation Brands (NYSE:STZ) partnership.
If you are hesitant towards Hexo stock at present, it's understandable; the market has been volatile. However, this could be one company easily on the cusp of taking a coveted top four position. Food for thought.
Featured Image: Depositphotos/© Prazisss
