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Hexo Corp
Symbol HEXO
Shares Issued 257,061,783
Close 2019-11-18 C$ 2.11
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Post says Hexo feels pinch of supply overcapacity

2019-11-18 07:40 ET - In the News

The Financial Post reports in its Saturday edition that if there is a lesson that Canada's pot industry can take from a devastating week that saw the country's largest producers post massive losses, it might be this: Understand your market first, sell your product later. The Post's Vanmala Subramaniam writes that Chris Damas, a long-time cannabis analyst at author of The BCMI Report. "Look, it is up to them whether they are going to be cautious or bold in terms of how they play this. I just expect the same kind of spin cycle of how cannabis 2.0 is going to be the saving grace of the industry right now, the same thing we saw in the lead-up to legalization last year," he said. Mr. Damas vehemently disagrees with the notion that simply increasing the number of stores will alleviate the financial troubles many large licensed producers have been grappling with over the past few months. "Even if Ontario had those 1,000 stores which I think they will eventually, business is so overbuilt in terms of annual capacity of dried cannabis and soon, extracted oil, that it won't solve the underlying problem," he said. Evidence of the overcapacity problem is already playing itself out amongst some licensed producers, Hexo among them.

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