Profits have been wearing thin at most pot firms, weighed down by fewer-than-expected retail stores, cheaper rates on the black market and sluggish overseas growth.
Last week, rival Canopy growth posted a bigger second-quarter loss, citing domestic supply challenges and slower revenue growth in the United States. But with more than three years into Canada's legalization of recreational cannabis, demand for pot and related products is surging and to tap into it, HEXO bought privately owned Canadian cannabis producers Redecan and 48North Cannabis Corp in September.
Earlier this year, HEXO also said it was taking over Zenabis Global Inc for C$235 million, giving it access to the European medical cannabis market.Reporting by Rithika Krishna in Bengaluru; Editing by Shinjini GanguliSubscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
That's not very rad, bro
You can tell the author was either Gen X or Boomer because they called it “pot”.
It was a joint decision