HEXO Corp. (HEXO) Revenue Soars in First Quarter Since Legalized Cannabis


 
 
09:38 03/14/2019

This morning, Hexo Corp HEXO  released Q2 2019 numbers and shares are currently soaring 6% in pre-market trading.

Hexo saw gross revenue increase 1,269% to C$13.4 million from C$1.2 million in the quarter a year ago.

Also, they reported a net loss of C$4.33 million in its fiscal second quarter in comparison to a loss of C$8.95 million posted in the year-earlier period.

Hexo saw shares jump as much as 12% pre-market before cooling off but Hexo is trading 15% lower than their all-time high of USD$7.17.

Key numbers from Hexo’s report:

The Canadian cannabis company sold 2,537 kg of adult-use marijuana, up from 952 kg in the previous quarter.

Average selling price per gram was C$5.83, up from C$5.45 in the previous quarter.

Average selling price per gram of medical cannabis was C$9.15, up from C$9.12.

Medical marijuana revenue brought in C$1.171 million, down from C$1.182 million a year ago.

Hexo produced 4,938 kg of dried cannabis, up from 3,550 kg in the October quarter.

 

Also, Hexo announced yesterday that they will purchase Toronto-based Newstrike Brands in an all-stock deal valued up to USD$197 million.

This deal further boosts Hexo’s production capacity as it will allow the company to yield an extra 150,000 kg annually along with agreements in 8 Canadian provinces.

 Hexo Corp a bold prediction after the announcement about Newstrike Brands. The company expects to achieve net revenues from Canadian cannabis sales of $400 million for fiscal 2020.




This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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