Hexo Continues To Struggle On Road To Profitability
Investing.com | Mar 23, 2021 11:00
Shares of Hexo Corp (NYSE:HEXO) (TSX:HEXO) continued to trade down early this week after the cannabis grower unveiled its latest earnings announced it will acquire Mountaineer Holding LLC in a cash-and-stock deal that will give Trulieve an entry into the West Virginia market, a new medical marijuana state, as well as a cultivation and processing plant in Massachusetts.
Valued at only $6 million, the deal is far from the multi-billion-dollar consolidations that cannabis sector has become known for, but it is in keeping with Trulieve’s steady inch-it-along approach to growing its business. The result has contributed to Trulieve emerging as a solid powerhouse performer.
Its stock yesterday closed at $49.77, down 1.29% on the day. In the past year, however, it has gained a whopping 670%.
The latest deal gives Trulieve facilities and licensing in Massachusetts and West Virginia, adding to its existing operations across Florida, California, Connecticut and Pennsylvania.
“West Virginia just became a lot more interesting with the addition of a cultivation permit asset to our processor and dispensary application wins,” said Trulieve CEO Kim Rivers.
CBD Market Expands/h2
The CBD market keeps getting bigger, and gaining a loyal consumer base.
According to the latest figures released by New Frontier Data, an independent analytics firm specializing in the global cannabis industry, consumer spending on CBD, a cannabidiol derived from cannabis and hemp, reached $3.8 billion in 2020.
The substance is gaining acceptance by consumers to help alleviate a long list of conditions, from anxiety to inflammation.
According to New Frontier, 41% of Americans CBD consumers surveyed use it primarily for pain, while 33% use it to lessen anxiety. The survey showed that just over half of Americans surveyed reported having a friend or family member who regularly consume CBD.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.