One stock that has started to break onto the cannabis scene in a big way over the past few weeks is Hydropothecary Corp (OTCMKTS:HYYDF). The company is considered to be a possible leader in the move to open up a market for CBD beverages, following a deal to partner with Molson Coors Canada, the Canadian business unit of Molson Coors Brewing Company (NYSE:TAP) (TSX:TPX).
The company also just announced that it has changed its corporate name from “The Hydropothecary Corporation” to HEXO Corp. “As we look to expand globally, we sought to find a name that would resonate around the world. Something that is strong, easy to pronounce, and easy to recognize. Something that has the ability to become truly iconic,” said Adam Miron, co-founder and Chief Brand Officer of the Company.
Hydropothecary Corp (OTCMKTS:HYYDF) trumpets itself as a company that, together with its subsidiaries, produces and distributes medical marijuana products.
The company is headquartered in Gatineau, Canada, and, as noted above, just changed its corporate name from “The Hydropothecary Corporation” to “HEXO Corp.” effective August 29, 2018.
HEXO creates and distributes innovative, easy-to-use and easy-to-understand products to serve the Canadian cannabis market. One of the country’s lowest-cost producers, HEXO is rapidly increasing its production capacity in the lead up to the adult-use cannabis market.
The Company currently operates with over 310,000 sq. ft. of production capacity with construction on another 1,000,000 sq. ft. expansion set to be complete by year-end. 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.
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As noted above, the stock has been powering higher of late, with increasing focus and attention from US OTC traders and Canadian traders. The company has been making a number of moves, including a key strategic partnership and a corporate name change, both of which suggest a strong chance for increasing buzz among traders focused on the cannabis patch.
In all, recent action has seen 16% added to share values of the name over the past month of action. Furthermore, the listing has witnessed a pop in interest, as transaction volume levels have recently pushed 310% above the average volume levels in play in this stock over the longer term.
In addition, also driving shares, the company just announced that it has entered a supply agreement with the Ontario Cannabis Store. According to the release, under the deal, the company will supply the province with its Elixir product line, along with its newly launched Fleur de Lune, which is an “intimate cannabis oil”. The company noted that the Elixir product offering includes several formulations such as THC, CBD, or 1:1 in either a peppermint oil or a medium-chain triglyceride carrier oil.
“We are pleased to initially offer our award-winning smoke-free cannabis products online to the Ontario adult-use market on October 17th,” said James McMillan, HEXO’s Vice-President of Strategic Business Development. “We look forward to continue working with the Ontario government as they move towards privatization and to offer our full range of products both online and in-stores in spring 2019.”
At this time, carrying a capital value in the market of $814.84M, HYYDF has a bankroll ($963K) of cash on the books, which stands against about $9.8M in total current liabilities. HYYDF is pulling in trailing 12-month revenues of $4.4M. In addition, the company is seeing top-line growth, with y/y quarterly revenues growing at 4.9%. We will update the story again soon as developments transpire. Sign-up for continuing coverage on shares of $HYYDF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $HYYDF, either long or short, and we have not been compensated for this article.