Canadian marijuana stock HEXO (NYSE: HEXO) wasn’t a winner in 2020, to be blunt: $1,000 spent on its shares on the first trading day of 2020 would have shriveled to only $628.90 today.
Hexo’s decline is due both to the tough conditions of the marijuana industry in general and the company’s often clumsy attempts to navigate it specifically.
To mention some of the former in passing, despite some recent improvements, the Canadian government has been turtle-slow in granting dispensary licenses. Meanwhile, that country saw an explosion in marijuana production, which cranks up supply and pushes down prices. And black market weed remains competitive, therefore a continuing threat to licensed producers and retailers.