The marijuana stock market is currently going through a bit of trouble. As of late investors keep dumping shares of marijuana stocks indiscriminately. It is believed that they are looking for the next stage of growth before jumping on to these pot stocks again. Among those marijuana stocks to watch, HEXO Corp (TSX:HEXO) (NYSE:HEXO) seems to be underperforming consistently. This marijuana stock has recently hit a 52 week low. That being said, analysts believe that Hexo, which was uplisted on the New York Stock Exchange this month, should be one of the cannabis stocks to gain attention from investors. So let’s take a look at some of the factors that are currently in favor of this marijuana stock.
One Marijuana Stocks Production Capabilities
One of the big issues with this cannabis stock was that the company’s production capabilities weren’t big enough. However, in May, Hexo addressed the issue by acquiring Newstrike Brands and raising its annual production to 150,000 kilos. Also, Hexo is getting into the hemp market in a big way. It wants to make edibles and concentrates from hemp extracts so that it can cash in on the legalization of edibles in Canada late on this year. So far Hexo has struck supply deals that will give them access to huge amounts of hemp. One deal will give Hexo access to as much as 200,000 kilos of hemp for fiscal 2020, while the other will supply the company with 60,000 kilos in each quarter.
What’s Ahead for One Marijuana Stock
It is also important to note that Hexo has also entered into an important joint venture with Molson Coors. With this deal, they will produce, gummies, cannabis-infused beverages, and premium quality vapes. The joint venture in question is named Truss Beverages and Hexo has a 42.5% stake in the same. It could eventually go on to become one of the company’s more lucrative businesses. Analysts believe that the stock is currently underperforming at a time when the entire marijuana market is in a state of flux. However, things should improve soon.