One stock that has been launching back to the upside in the cannabis patch since mid-December is Hexo Corp (OTCMKTS:HYYDF). We have documented the bull case here ad nauseam in recent weeks, and there’s no point in rehashing all of that. To add further color to the story, the company just announced the results of its annual general meeting of shareholders held on January 16, 2019.
According to the release, “All items put forth at the meeting were approved, including the appointment of MNP LLP as auditor of the Company for the ensuing year, and the re-election of Nathalie Bourque, Vincent Chiara, Jason Ewart, Adam Miron, Dr. Michael Munzar and Sébastien St-Louis as directors of the Company, all with a majority of the votes cast, to hold office until the next annual meeting of shareholders or until their successors are elected or appointed.”
Hexo Corp (OTCMKTS:HYYDF) trumpets itself as a company that, together with its subsidiaries, produces and distributes medical marijuana products. The company is headquartered in Gatineau, Canada, and, as noted above, just changed its corporate name from “The Hydropothecary Corporation” to “HEXO Corp.” effective August 29, 2018.
HEXO creates and distributes innovative, easy-to-use and easy-to-understand products to serve the Canadian cannabis market. One of the country’s lowest-cost producers, HEXO is rapidly increasing its production capacity in the lead up to the adult-use cannabis market.
The Company currently operates with over 310,000 sq. ft. of production capacity with construction on another 1,000,000 sq. ft. expansion set to be complete by year-end. HEXO will serve the adult-use market under the HEXO brand, while continuing to serve its medical cannabis clients through the well-known Hydropothecary brand.
According to company materials, “HEXO Corp. creates and distributes innovative, easy-to-use and easy-to-understand products to serve the Canadian cannabis market. One of the country’s lowest-cost producers, HEXO is rapidly increasing its production capacity in the lead up to the adult-use cannabis market. The Company currently operates with over 310,000 sq. ft. of production capacity with construction on another 1,000,000 sq. ft. expansion set to be complete by year-end. HEXO will serve the adult-use market under the HEXO brand, while continuing to serve its medical cannabis clients through the well-known Hydropothecary brand.“
As noted above, HYYDF just announced the results of its annual general meeting of shareholders held on January 16, 2019.
Traders will note 46% during the past month in terms of shareholder gains in the name. What’s more, the listing has witnessed a pop in interest, as transaction volume levels have recently pushed 34% beyond its prior sustained average level.
“Under Ed’s leadership, we built an exceptionally robust financial function which has enabled us to hit key significant milestones and to grow HEXO Corp. according to our vision. Ed was instrumental in making our initial public offering a reality. On our first day of trading, our company was valued at approximately $127.9M. Today, we are valued at over $1.2B,” said Sebastien St-Louis, CEO and co-founder of HEXO Corp. “Ed has been a valued and trusted advisor throughout his time at HEXO and has worked tirelessly to support me and the entire team during his tenure. I want to take this opportunity to thank him for his dedication and professionalism.”
Now commanding a market cap of $1.03B, HYYDF has a significant war chest ($176.9M) of cash on the books, which is balanced by about $17.4M in total current liabilities. One should also note that debt has been growing over recent quarters. HYYDF is pulling in trailing 12-month revenues of $9.5M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 414.1%. You can bet we will update this one again as new information comes into view.