Canadian CANNAINVESTOR Magazine November / December 2019 | Page 208

HEXO

Another company that had a tough time in October was HEXO Corp (HEXO). Its third-quarter results proved to be a bit of a shock as its losses were thrice that of analysts’ expectations. In Q3 2019, the company’s losses came in at C$ 43.7 million, as opposed to an estimate of C$ 13.2 million from analysts. The stock plunged after the publication of the results as well.

Despite the general doom and gloom in the sector due to disappointing earnings, Aphria (APHA) proved to be the silver lining for the industry in October. While many other companies continued to suffer from crippling losses, Aphria managed to turn a profit in Q3 2019. The company also announced that it expects to hit is original sales target of C$ 650 million to C$ 700 million for the full year as well. The stock soared after the results had been announced.

KushCo

Another interesting development in the month of October was KushCo Holdings’ (KSHB) significant push into the retail space. Earlier on in October, KushCo announced that it is going to partner with Sentia Wellness in order to grow its retail division. The company had launched its retail division recently. KushCo is looking to leverage Sentia’s CBD brand in order to grow its retail business and it will be interesting to see how it works out.

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