Hexo announces $50 million public offering
Hexo Corp. announced late Monday it intends to launch an offering of units, led by Canaccord Genuity. The Ontario-based pot producer confirmed the details Tuesday morning, noting it will offer 55.6 million units priced at $0.90 apiece, for total proceeds of $50.04 million. Each unit includes one common share and a purchase warrant for half of a common share. The offering is expected to close May 21, and will be subject to approvals from the Toronto Stock Exchange and the New York Stock Exchange.
TGOD inks national supply agreement with Medical Cannabis by Shoppers
The Green Organic Dutchman announced Tuesday it has signed a national supply agreement with Medical Cannabis by Shoppers, a subsidiary of Shoppers Drug Mart Inc. This agreement will allow TGOD to distribute its cannabis products via Shoppers’ e-commerce cannabis sales platform, and will include TGOD’s latest 2.0 offering of infusers, teas and vapes. The agreement is for a three year-term with a renewal clause for an additional two years. Robert Gora, vice president of sales at TGOD, says the deal will allow TGOD to tap into Shoppers’ national reach. “We share their vision of facilitating access to medical cannabis for patients across Canada," he said in a release. TGOD finished Tuesday as the Toronto Stock Exchange’s top percentage gainer thanks to an 85-per-cent intra-day spike.
Aurora Cannabis soars
Aurora Cannabis Inc. extended its gains on the TSX Composite Index Tuesday after the pot producer posted $75.5 million in revenue in its third quarter, which was 35 per cent higher compared to the previous quarter. Aurora’s stock surged as much as 65 per cent on Tuesday - shortly after the opening bells – and finished trading up 32.9 per cent at $20.40 per share.
U.S. pot will outstrip Canadian players once market access is granted, strategist says
The latest round of cannabis earnings represents an “inflection point” that could shift market dominance to American companies, according to one strategist. Chicago-based Green Thumb Industries Inc. said it generated more than US$100 million in its first-quarter results, released on May 14. Meanwhile, Edmonton-based Aurora Cannabis Inc. said it remains on track to hit cost-cutting targets in its fiscal-third-quarter report, released the same day. Mark Noble, executive vice-president of strategy at Horizons ETFs Management Inc. told Bloomberg News that the scales of the North American pot market will tip once American companies are given the same access to potential investors. “I think the only thing that’s really keeping [U.S.] stocks from overtaking the Canadian LPs is the fact that they’re not listed on the U.S. stock market,” Noble told Bloomberg.