Can This Cannabis Stock Rebound As a Potential Buyout Target?
Since February, the broader cannabis market has seen a decline in stock prices, following a boost from the anticipated U.S. federal legalization of cannabis as the Biden administration stepped into office. A Congressional infrastructure bill passed on to President Biden this past week includes a proposal to allow cannabis scientists to purchase product from local dispensaries for research, rather than relying solely on government-grown cannabis.
But it could be too little too late for the stock of some cannabis operators, like Canada's Hexo (NASDAQ: HEXO), which was recently in the spotlight after auditors from PriceWaterhouseCoopers LLC raised "substantial doubt about Hexo's ability to continue as a going concern." Whether the company will have the financial resources to grow and provide a rebound in its stock price has some investors wondering what might be next for Hexo.
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Source Fool.com
