Hexo Corp. (NASDAQ: HEXO) saw a considerable rise in its stock price, during the last few days, as it took off from $0.90 to almost $1.30. The context within which this rise comes ties into a broader context, relating to launching innovative brands into the market, as well as mixed financial quarterly results.
Hexo Introduces 5 Cannabis Strains
Recently, Hexo Corp. (HEXO) has been making the rounds, after its latest launch of five new cannabis strains that it just launched into the market. The launches come under its renowned Original Stash and Redecan brands, each of which are highly adored across the marijuana markets across Canada. Moreover, the development enhances Hexo’s already strong product portfolio, available across Canadian dispensaries, and delivers it a major competitive edge. Hexo continues to prove itself to be an innovative industry leader. It amplified the marijuana experience that magnifies the “high” its users seek. These brands include Animal Rntz, Sex Panther, and Violet Fog.
Mixed Quarterly Results for HEXO
The recent launch comes in the wake of dismal financial results, released towards the end of December in 2022. Its revenue had fallen by almost 30% year-on-year, to C$35.8 million. However, its EBITDA loss improved by C$11 million, through an aggressive cost-cutting approach. Through this strategy, The company successfully cut down its operating costs by a whopping 80%, in comparison to the prior year’s Q3 quarter. This achievement was carried out by Hexo fully redesigning and improving its Masson growth facilities, with improved cultivation agreements. Similarly, there has clearly been a renewed focus on strategic partnerships to enhance the capability and quality of cannabis offerings.
Conclusion
HEXO is a fine example of a stock that is in motion. It is continuously aiming to prove itself as an innovative leader in the market. Similarly, its financial results display that the management is definitely working to work around the challenges ahead of it and streamline its operations.
