Shares of Hexo Corp (NYSE 🙂 (TSX 🙂 continued to fall early this week after the cannabis grower revealed his latest result last week showing a loss of nearly $ 21 million on earnings that nearly doubled in the previous quarter.
The latest loss added another quarter to the Canadian cannabis grower's list of negative reporting periods. But it was much better than the same three-month period the previous year, when the Hexo posted a loss of $ 298.2 million.
On the positive side were the revenues. Hexo's net revenues for the second quarter were approximately $ 32.9 million, nearly double the $ 17 million achieved in the same quarter last year. Still, investors were not moved to endorse what they saw. Shares of Hexo lost nearly 14% the next day and fell below the level before the latest results were released.
Canadian analysts have only slightly adjusted their target price on Hexo, including CIBC lowering its target to C $ 13 from C $ 13.50. Shares of Hexo closed at C $ 8.88 or US $ 7.06 for US-traded shares yesterday.
The latest revenue news comes about a month after Hexo announced a $ 235 million deal to acquire Zenabis Global (OTC 🙂 (TSX :), a small Vancouver-based recreational and medical cannabis provider traded on both the Toronto Stock Exchange and the OTC markets in the US The purchase was a strategic move to give Hexo access to the European market and its holdings in Canada.
Trulieve Deal: Part of Small, But Steady Business Expansion
Shares of Trulieve Cannabis of Florida (OTC 🙂 continue their steady rise as the company continues to expand.
The company announced on Monday that it will acquire Mountaineer Holding LLC in a cash-and-stock deal that gives Trulieve access to the West Virginia market, a new medical marijuana state, as well as a cultivation facility. and processing plant in Massachusetts.
At just $ 6 million, the deal is a far cry from the multi-billion dollar consolidations the cannabis industry is known for, but it is in line with Trulieve's steady inch-it- along approach to growing his business. The result helped Trulieve emerge as a solid powerhouse.
The stock closed at $ 49.77 yesterday, down 1.29% on the day. However, in the past year it has gained a whopping 670%.
The latest deal provides Trulieve facilities and licenses in Massachusetts and West Virginia, adding to its existing operations in Florida, California, Connecticut and Pennsylvania.
"West Virginia just got a lot more interesting with the addition of a cultivation permit to our processor and pharmacy applications," said Trulieve CEO Kim Rivers.
CBD Market Expands
The CBD market is growing and gaining a loyal consumer base.
According to the latest figures from New Frontier Data, an independent analytics company 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 ailments, from anxiety to inf
According to New Frontier, 41% of Americans surveyed use CBD consumers primarily for pain, while 33% use it to reduce anxiety. The survey found that just over half of Americans surveyed reported having a friend or family member who consumed CBD on a regular basis.
