Is It Too Late to Buy Hexo Stock?
Shares of Canadian cannabis producer Hexo (NYSE: HEXO) have seen some pretty wild trading action in the past year. Over the past 12 months, the stock is up about 51% -- but is down 57% from its February high. On May 28, Hexo announced that it would merge with private cannabis producer Redecan, also based in Canada. This would result in reclaiming the top spot in the recreational cannabis market in that country, with a 17% market share. For perspective, the Tilray-Aphria combination comes a close second with a 15.5% market share.
The acquisition will cost Hexo about 925 million Canadian dollars in cash and stock. Despite its prospects, the market was clearly disappointed with the deal -- the stock is down significantly since the plan was announced. But in the wake of those declines, is this a good time to open a stake in Hexo?
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Source Fool.com
