The shares of Hexo Corp. Thursday was a bright spot in a lackluster cannabis sector after the Canadian company presented results for its final quarter. This resulted in a narrower loss and a large jump in sales than the legal adult market in Canada began.
Quebec-based US stocks of Hexo
HEXO, + 2.35%
rose 2.2% as the Toronto Stock Exchange listed stocks
HEXO, + 3.32%
rose 3.6% as most rivals fell.
The Company announced that it had a net loss of $ 4.33 million ($ 3.25 million) in the second quarter ended January 31
Sales increased to $ 13.4 million from $ 1.2 million. The company sold 2,537 kg of adult cannabis, compared with 952 kg in the previous quarter, at an average price of $ 5.83 per gram compared to $ 5.45 in the previous quarter. Medical cannabis sales were $ 1,171 million after $ 1,182 million in the prior year and $ 1,391 million in the prior quarter. The price per gram of medical cannabis increased slightly from $ 9.12 to $ 9.15.
Hexo produced about 4,938 kg of dried cannabis during the quarter, compared to 3,550 kg in the October quarter. The number of employees increased by 32% to 374 employees, as production was ramped up and new equipment was put online.
For more information, please see: Hexo stocks are advancing as losses become tight and revenues soar
. Related: Hexo Acquires Newstrike Brands worth About $ 197 Million
Also on Black Thursday were shares in Cannabis Real Estate Investment Trust's Innovative Industrial Properties Inc.
rose 3.2% after the company's revenue increased 111% in its last quarter.
The company reported net income of $ 2.3 million or 23 cents per share in the fourth quarter, compared to $ 284,000 or 7 cents per share for the same period last year. Sales increased from $ 2.3 million in the same period of the previous year to $ 4.8 million.
Aurora Cannabis Inc. Stocks
fell 1.4%, which worsened some of the gains from the previous day, by hiring a Billionaire hedge fund managers were scored and activist Nelson Peltz as a consultant.
Tilray Inc. Stocks
TLRY, + 0.68%
reversed early losses, rising 0.6%. Tilray said Wednesday he hired former Goldman Sachs general manager Andrew Pucher as chief corporate development officer to oversee the M & A and business investment team. Pucher was most recently Goldman's chief of Canadian diversified investment banking, which included the coverage of the cannabis industry.
Tilray's recent dealings included a 50/50 joint venture with AB InBev
for the development of THC and CBD beverages and a worldwide association with Sandoz, part of the Swiss pharmaceutical company Novartis AG
NVS, + 0.43%
NOVN, + 1.18%
to expel his medical products. Last month, the company announced a $ 317 million cash-and-stick deal for Manitoba Harvest, a company claiming to be the world's largest hemp food manufacturer. Tilray plans to launch CBD-based products in the US this summer.
MedMen Enterprises Inc.
MMNFF, + 1.22%
increased by 0.4%. MedMen was banned by the New York Medical Cannabis Association on Wednesday, according to MJBizdaily.com. The association had announced that it could dissolve its connection with MedMen of California in February in response to a lawsuit filed by the company's former chief financial officer, claiming to be racist, homophobic and misogynistic epithets and slander, drug and alcohol abuse, and the like Persons exposed to humiliation while in the company.
In other areas of the sector, Canopy Growth Corp.
fell 1.9% and Cronos Group Inc.
decreased by 3.0%.
Green Organic Dutchman Holdings Inc.
TGODF, + 0.62%
TGOD, + 1.15%
decreased by 1%, CannTrust Holdings Inc.
Lost by 2%, Aleafia Heath Inc.
ALEF, + 3.62%
ALEF, + 3.62%
increased 2.4% and OrganiGram Holdings Inc.
decreased by 0.8%.
The Horizons Marijuana Life Sciences ETF
decreased by 0.8% and the ETFMG Alternative Harvest ETF
decreased by 0.6%.
The S & P 500
declined by 0.1% and the Dow Jones Industrial Average
DJIA, + 0.03%
decreased by 0.01%.
Additional coverage by Max A. Cherney of San Francisco
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