Friends, an interesting article today from Bloomberg about public cannabis company Hexo Corp. (f/k/a The Hydropothecary Corp.) They’re the ones that announced the deal with Molson Coors in Canada a few months back.
What I love about this story is that it’s showing how quickly the public cannabis markets are maturing. They’ve now got activist investors! As the story notes, Hexo is up 95% since mid-August and is trading 13x enterprise value to forecast (!), but because that lags the 26x EV to forecast of the rest of the industry (minus Tilray, which skews the results!), an activist investor sees blood in the water. Another sign that finance is treating cannabis like any other industry (see, also, Goldman and BofA lending into the Constellation deal).
Welcome, cannabis, to the public markets.
By: Marc Hauser