HEXO Corp (HEXO)

[Timetravelerdos]

On Aug. 1, Molson Coors Brewing Co said its Canadian unit, Molson Coors Canada entered into an agreement with Hexo Corp (OTC: HYYDF). Both companies agreed to form a joint venture that would look for opportunities in the cannabis-infused beverages segment, focusing on non-alcoholic beverages. The beer maker will have 57.5 percent of the JV, with Hexo controlling the rest.

The stock of Molson Coors didn't react much to the news, while Hexo’s shares advanced by 14 percent. The lack of reaction can be attributed to the fact that despite the full legalization of cannabis in Canada, the edibles and beverages will only be available for customers next year. During Molson’s third-quarter earnings call, CEO Mark Hunter said the market for non-alcoholic cannabis-infused beverages in Canada could be worth $3 billion.