In the announcement of the acquisition of Newstrike Brands (NWKRF), the management of HEXO Corp. (HEXO) reported that the resulting company could make a net revenue of $400 million in 2020. With this figure in mind, the resulting business combination should be trading at 3.8x forward sales, which seems quite an opportunity. Competitors in the cannabis industry are trading at as much as 69x Forward sales. HEXO has been massively undervalued by the market as few analysts seem to have assessed the new acquisition.
HEXO And Newstrike
Headquartered in Gatineau, Canada,