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Shares of Canadian-based cannabis distribution company Hexo Corp. (HEXO) - Get HEXO Corp. Report surged on Thursday after it reported a fiscal second-quarter loss narrower than analysts' forecasts.

Hexo stock gained close to 10% in premarket trading in New York and Toronto on Thursday, rising 55 cents to $6.50 on the Nasdaq Stock Exchange and gaining 43 cents to C$7.83 on the Toronto Stock Exchange.

The Montreal-based company on Thursday reported a net loss of C$4.33 million ($3.25 million), or 2 cents a share, in its fiscal second quarter ended Jan. 31, compared to a loss of C$8.95 million, or 10 cents a share, in the year-earlier period.

Analysts surveyed by FactSet had been anticipating a loss of 3 cents a share. Revenue rose to C$13.4 million from C$1.2 million in the first complete quarter since Canada legalized marijuana on Oct. 17, 2018.

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Hexo said in a statement that it is prepping for the initial harvest from its new 1-million-square-foot greenhouse facility and activating its "product transformation" facilities in Belleville, Ontario, both of which should boost revenue through its fiscal fourth quarter.

The company sold 2,537 kg of adult-use cannabis, up from 952 kg in the previous quarter, at an average price of C$5.83 a gram, up from C$5.45 in the previous quarter. It produced about 4,938 kg of dried cannabis in the quarter, up from 3,550 kg in the October quarter.

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Separately, Hexo announced earlier this week that it is the first cannabis company to join the Food & Consumer Products of Canada - a nod to cannabis being a part of the broader retail food industry.