For one reason or another, many Canadian-based cannabis companies are looking to get exposure into U.S. markets. From a larger market size, the Canadian markets volatility, to even the recent legalisation of hemp, Canadian companies are seeing the states as potentially a superior market to operate in, despite the risk of existing competition.
As such, it’s not surprising that another Canadian-based marijuana company, HEXO Corp (TSE: HEXO) announced that it has filed an application to list its common shares on the NYSE.
HEXO Corp holds many distinctions in the Canadian market. As an award-winning company based out of Quebec, HEXO also boasts the single largest legal cannabis supply contract in Canada’s history, acting as the main supplier to Société québécoise du cannabis (Quebec Cannabis Society) and providing 200,000 kg of weed over a five-year agreement worth over $1 billion.
“This is a remarkable milestone for our Company. We committed to our shareholders that HEXO would seek a listing in the US by the end of 2018 and I am proud to say that we delivered,” said company CEO and co-founder Sebastien St-Louis. “We have a proven track record for our ability to execute and we will maintain it through our focus on developing and distributing innovative consumer-packaged cannabis products.”
In addition to supplying other provinces such as Alberta and Ontario, HEXO caught the attention of major brewer Molson Coors Canada back in August, which resulted in an exclusive partnership to develop non-alcoholic cannabis beverages. The project, called Truss, marked a major play in the budding cannabis-beverage market that’s anticipated to be worth USD $600 million, according to Business Insider.
At the same time, HEXO Corp is also in the process of building a foothold in the Greek market, building a production, processing, and distribution facility y in the Eurozone area to compete in major European markets. At the same time, the are also planning to approach international markets, such as Latin America.
Upon regulatory approval and completion of the formal listing process, the firm will soon announce the it’s first day of trading on public markets. HEXO’s common shares will trade under the ticker “HEXO”, the same one used on the TSE. At the same time, HEXO has also filed an amended short form base shelf prospectus, in which the company will make offerings of up to CAD $800 million in common shares.
As has usually been the case for the past couple of months, cannabis shares have moved in directions often irrespective of less than astonishing news announcements. HEXO shares ended up dropping 5.2 percent today, underperforming the Dow Jones which dropped 1.8 percent.
HEXO Corp Company Profile
HEXO Corp creates and distributes award-winning, innovative, easy-to-use products to serve the Canadian cannabis market. One of the country’s lowest-cost producers, HEXO currently operates with over 310,000 sq. ft. of production capacity with construction on another 1,000,000 sq. ft. expansion set to be complete by year end. HEXO serves the adult-use market under the HEXO brand, while continuing to serve its medical cannabis clients through the well-known Hydropothecary brand. –HEXO Corp