Pot-Stock Hexo Tumbles Out of Canada's TSX
Investing.com | Jun 16, 2020 05:35
Cannabis grower Hexo (TSX:HEXO) (NYSE:HEXO) is about to become the only pot-stock to be evicted from the S&P/TSX Composite in a routine overhaul of the benchmark Canadian equity index, as the company's own ups and downs have collided with huge, broader volatility across all major indexes.
The Ottawa-based firm, which is also traded on New York Stock Exchange, is one of 14 corporations whose shares will drop out of the major Canadian index before the opening bell on June 22, according to an Sebastien St-Louis said Hexo was on track to post a positive cash flow by the end of the year. Hexo opened up with a 13.5% rally early on Friday, but all of that was history, once the delisting announcement hit the wires.
Foray into the US market ahead/h2
Hexo recently announced it would be entering the U.S. market as it inked a joint venture deal with beer-maker Molson Coors (NYSE:TAP) to develop a non-alcoholic hemp-derived CBD beverage that would be launched in Colorado.
The joint venture, known as Truss CBD USA, was set up as an independent company with its own board of directors. Molson Coors would be the majority owner.
The new company would build on the Hexo-Molson Coors collaborative relationship, which includes another joint venture that focuses on non-alcoholic cannabis-infused drinks for the Canadian market – Truss Beverages. This company is expected to launch its first beverages later this year.
Hexo shares closed yesterday at US$0.98 (C$1.34), down 3.88% in the U.S. and almost 1.5% in Toronto.
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