Activist Pushes Marijuana Company Hexo to Review Strategic Alternatives
GATINEAU, Que. — An activist investor is pushing marijuana company Hexo Corp. to launch a review of its strategic alternatives including a possible sale of the firm.
Riposte Capital says it’s Hexo’s second-largest shareholder.
In a letter to the firm, Riposte says shares in the company formerly known as Hydropothecary trade at a discount compared with its peers, despite recent positive developments.
It says the lower share price significantly hampers the company in the race for global growth and expansion.
The New York-based investment firm pointed to Hexo’s contract with the SAQ, Quebec’s liquor agency, and its joint venture with Molson Coors Brewing Co. as key advantages that are not reflected in its stock price.
Riposte says it believes Hexo’s Molson Coors joint venture alone could be worth multiples of its current stock market value.
Companies in this story: (TSX:HEXO)
The Canadian Press