HEXO Corp (HEXO)

[AMPazzo]

Seems like this write up was missed on October 6.

HEXO Corp. (TSX: HEXO) (OTC Pink: HYYDF) largely hit the investment community’s radar after entering into a joint venture agreement with Molson Coors Brewing Company (NYSE: TAP) (TSX: TPX) in early August 2018. The joint venture will focus on developing a line of non-alcoholic, cannabis-infused beverages.

As of October 5, 2018, HEXO Corp. and Molson Coors Brewing introduced the joint venture, Truss. Truss is being led by Molson Coors executive, Brett Vye, and will have a total of five board members (3 from Coors, 2 from HEXO).

A key piece of evidence that suggests a U.S. uplisting could be on the horizon comes from Riposte Capital, an activist investment firm. Riposte Capital issued a press release on September 6, 2018 essentially aimed at HEXO Corp. and its leadership to take action and build shareholder value.

The activist investor noted that “despite enviable assets, contracts and strong balance sheet, HEXO Corp. trades at [a] deep discount.” Furthermore, the institutional investor noted that the “stock suffers from poor research coverage and investor awareness, a late listing to the TSX, no U.S. listing, and an investor relations effort that needs improvement.”

This shows that activist investors could help push management to seek greater investor outreach and awareness through an uplisting to a major U.S. exchange. This is in addition to a greater investor awareness and relations outreach.