Molson's JV Partner Hexo Begins Trading On NYSE American

A new cannabis company joined the NYSE American exchange Wednesday.

Canada-based HEXO Corp. HEXO was down 7.26 percent at the time of publication. 

What Happened

Hexo announced Jan. 17 that its shares were approved to trade on the NYSE American, a stock market designed for growing companies with a focus on small-cap stocks. The ticker "HEXO" is the same one with which the equity trades on the Toronto Stock Exchange. 

Why It's Important

In August, Hexo and beer company Molson Coors Brewing Co TAP announced an agreement to create a joint venture, Truss, to develop non-alcoholic cannabis-infused beverages for the Canadian market. 

Cannabis-infused beverages are expected to be one of the most popular product categories in the Canadian market. The government is developing regulations to allow the sale of edibles and beverages, with the products expected to hit the shelves before Oct. 17, 2019. 

Trading on the NYSE American is likely to attract more investors to Hexo Corp. given the exchange's more stringent requirements for companies, which could give investors more confidence in the stock. 

What's Next

The stock began trading two days after Hexo said it plans to launch a public offering of common shares. The company will sell around CA$50 million ($37.42 million) worth of stock. Hexo said it will provide more details about the offering, including the pricing and total size, after it signs an underwriting agreement.

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