Hexo‘s pioneering value brand Original Stash was the first to take advantage of the demand for cheap weed. It represented half of the 9,338 kg of REC the company sold in the quarter ending April 30. These sales drove an improved quarter in which Hexo announced a $19.5M net loss–down 93% from the previous quarter’s $298M loss.
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- Net revenue is up 30% quarter over quarter to $22.1M, with an adjusted EBITDA loss of $4.3M.
- The company’s plan to become EBITDA positive by the end of the year relies on the increasing number of REC stores in Ontario and Quebec.
- Hexo CEO Sebastien St-Louis called on “the private sector to provide the service that consumers demand,” a clear message to Quebec’s REC retail monopoly the Société Québécoise du Cannabis.
Though stocks rallied on the news, not everyone was optimistic. AltarCorp Capital predicted Hexo would continue to face challenges due to share dilution and sector problems.
Technical 420, Cantech Letter
S&P removed Hexo from the the S&P/TSX Composite Index, a benchmark group of stocks, leaving only four LPs (Canopy, Cronos, Aurora, and Aphria) represented among the index’s 250-some companies.
MJ Biz Daily