HEXO Drops And Announces Results For Q4 And FY2021: Why Is It Acquiring 3 Businesses?

HEXO is an 8-year-old Canadian company that manufactures and markets cannabis and various cannabis products (including medical). Its stock has dropped 12% over the past month. The price had been falling since September 29, and after 20 days it reached $ 1.67. On October 19, the cost surged 16% to $1.94. On October 27, the stock was the cheapest in the last 30 days, as its worth was $ 1.61. The next day it gained $ 0.04.

The company announced results for the fourth quarter and fiscal 2021. Its net revenue growth was $ 16.1 million from the prior quarter to $ 38.7 million, and revenue for 2021 was $ 123.5 million, which is 53% more than in 2020. Net sales jumped 71% from the third quarter, up 43% from the fourth quarter of the previous year. Moreover, HEXO acquired Zenabis Global, which generated a net income of $ 6.8 million, Redecan and 48North Cannabis, with the aim of increasing profitability and market share.