Hexo Corporation (OTCMKTS:HYYDF) (CVE:THCS) stock climbed on Thursday after a part owner of the company urged it to explore more deals in the hot cannabis space in Canada, which is poised to legalize pot next month.
An owner of about 2.5% of Hexo, Riposte Capital wants the company to cash in on the cannabis craze with a deal, either in a sale or a major investment from the likes of Molson Coors (NYSE:TAP), with which it's already in a joint venture to develop nonalcoholic, cannabis-infused beverages, a post by Seeking Alpha said.
For now, the report said Hexo chief executive Sebastien St. Louis remains focused on additional joint ventures with large package consumer goods companies.
Shares of Hexo in Toronto were up 8.15% to trade at C$6.37. The shares in New York's over-the-counter market gained 7.84% to US$4.81.
Hexo had approved a change in its name last month from The Hydropothecary Corp. Hexo creates and distributes easy-to-use and easy-to-understand products to serve the Canadian cannabis market.
It is one of the country’s lowest-cost producers. The company is increasing its production capacity in the lead up to the adult-use cannabis market. Hexo will serve the adult-use market under the Hexo brand, while continuing to serve its medical cannabis clients through the well-known Hydropothecary brand.