Marijuana News Today: U.S. Marijuana Legalization Expands, HEXO Stock Climbs

Marijuana News Today

Marijuana News Today

The marijuana news today is a little bit of a downer compared to yesterday, with many pot stocks falling in early-morning trading. U.S. marijuana legalization, however, continues to expand while HEXO stock climbs following a very positive quarterly report.

U.S. marijuana legalization scored another—albeit somewhat minor—victory today as Alaska is set to become the first state to allow on-site marijuana use. (Source: “Alaska poised to let people use marijuana at certain stores,” BNN Bloomberg, March 13, 2019.)

While not as industry-shaping as legalization being passed, this is positive news for the marijuana industry.

After all, the best-case scenario for pot is one in which it is treated much like alcohol. That means people being allowed to consume cannabis products outside their homes. This would, naturally, provide more opportunities for consumers to purchase marijuana products and lead to higher sales.


Not to mention that it would also be another opportunity for branding, since marijuana producers would be able to open up their own marijuana storefronts with a variety of pot products on offer to be consumed in-house.

This could even be a huge boon to tourism. To see this model in action, look to the Netherlands with its “coffee shops,” where marijuana can be bought and consumed on the spot.

While yesterday’s announcement that New Jersey was edging closer to marijuana legalization was far more impactful, this is still a win for the marijuana industry.

The more permissive and open the laws become, the better it will be for pot sales in the long run. If this model proves successful in Alaska, other states may follow. Furthermore, it provides guidance for potential federal legislation in the future.

So while marijuana stock investors may not be dancing in the streets following Alaska’s news, it could still have a big impact.

HEXO Stock

Perhaps the biggest headline in the marijuana news today is the HEXO Corp (NYSEAMERICAN:HEXO) quarterly earnings report.

As I’ve said before, these quarterly reports are likely to help boost pot stocks for several quarters to come. Massive growth in sales is expected due to the maturation of the Canadian legal marijuana market.

HEXO stock is backing up my projections today. It leaped by about 3.5% in early-morning trading today, while it has gained an impressive 16% over the past five days.

Today’s gains are being supported by the company’s very strong quarterly report. Gross revenue increased 1,269% versus the same period last year and increased 144% from the previous quarter.

The company produced 4,938 kilograms (about 10,886 pounds) of dried cannabis in the quarter, an increase of 39% over the previous quarter. Of that, 2,689 kilograms (about 5,928 pounds) were sold in the quarter, an increase of 142% from the HEXO’s last financial report.

“This is an exciting time for HEXO as we continue to achieve milestones on the way to becoming a top two cannabis company,” said HEXO CEO Sebastien St-Louis. (Source: “HEXO reports over $16.2 million in total gross revenue in the second quarter of fiscal 2019,” Globe Newswire, March 14, 2019.)

The quarterly report caps a very busy week for HEXO; yesterday, it announced its acquisition of Newstrike Brands Ltd (OTCMKTS:NWKRF, CVE:HIP).

The deal will see HEXOCorp’s production capacity expand while also putting it firmly in eight Canadian provinces. (Source: “HEXO Corp to acquire Newstrike Brands Ltd.,” Globe Newswire, March 13, 2019.)

Overall, it’s been a very strong week for one of my favorite marijuana penny stocks.

HEXO stock continues to make savvy business moves. The strength of the company is reflected in its quarterly report, combining solid fundamentals with huge potential to make it one of the stronger pot stocks currently available.

ACB Stock

The big news yesterday was that Aurora Cannabis Inc (NYSE:ACB) hired activist billionaire investor Nelson Peltz as an advisor, with the company seeing big gains. Today, however, the company has seen its fortunes turn.

ACB stock fell two percent in early-morning trading today, but is up significantly over the past five days, with gains of nearly 17%.

Much of these gains were the result of adding Peltz, a renowned Wall Street figure respected for his investment strategies.

Peltz will “work collaboratively and strategically to explore potential partnerships that would be the optimal strategic fit for successful entry into each of Aurora’s contemplated market segments,” said Aurora Cannabis. (Source: “Aurora Cannabis up 15% after billionaire activist investor Nelson Peltz is hired as an advisor,” CNBC, March 12, 2019.)

“I believe Aurora has a solid execution track record, is strongly differentiated from its peers, has achieved integration throughout the value chain and is poised to go to the next level across a range of industry verticals,” said Peltz.

While there was a bit of a pullback on the stock today, having Peltz around will undoubtedly add legitimacy to the company in the eyes of Wall Street traders.

Furthermore, Peltz could be a very valuable member of the Aurora team as he has a deep knowledge of how Wall Street works. If used correctly, that could help improve ACB stock’s prospects.

Overall, it has been a very strong week for Aurora Cannabis stock, today’s dip notwithstanding.

HEXO and ACB Stock Performances

The performances of HEXO stock (black line) and ACB stock (blue line) over the past week are seen on the chart below:

Chart courtesy of

Analyst Take

The marijuana news today isn’t quite as positive as yesterday’s, but it’s still positive overall.

The expansion of U.S. marijuana legalization in Alaska could present the most favorable model yet for pot stocks.

Meanwhile, on the pot stock market, HEXO stock is on the upswing following a very strong earnings report, likely the first of many to follow.