For traders in search of fresh breakouts in high-growth sectors, you don’t have to look further than Hexo Corp (OTCMKTS:HYYDF) for a great example. The company continues to impress with forward-looking moves, and the technicals are starting to match. To add further color, the company just announced that it is appointing Veronique Hamel as its Chief Innovation Officer. According to the release, with global experience in new product development, Ms. Hamel is well positioned to develop research strategy and oversee HEXO Corp’s research and innovation pipeline.
“I am pleased to welcome Veronique to our leadership team,” said HEXO’s CEO and co-founder, Sebastien St-Louis. “Veronique has a track record for building and helping shape high growth and consumer-centric organizations through trusted and award-winning innovations. She brings a strong business acumen to the process of innovation as well as a passion for break-throughs and industry firsts.”
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 that it is appointing Veronique Hamel as its Chief Innovation Officer. In all, recent action has seen 46% tacked on to share pricing for the stock in the past month.
Moreover, the listing has benefitted from a jump in recent trading volume to the tune of 34% above its longer-run average levels.
“I am proud to join the competent team at HEXO,” said Veronique Hamel. “HEXO has already shown extraordinary commitment to quality and innovation and has been recognized for that. I am thrilled to be on board to expand the Company’s innovation footprint and bring exciting, new and trusted solutions to consumers.”
Earning a current market cap value 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%. As more color becomes clear on the name, we will review the situation and update our take.
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