HEXO (NYSE:HEXO) is taking a significant step into a new market abroad, and investors are rewarding it -- its stock closed nearly 6% higher on Thursday.
Earlier in the day the marijuana company announced it has launched a set of medical marijuana products in Israel. These will be distributed and sold in collaboration with a local company, Breath of Life International, under a 24-month contract.
HEXO's press release pictured four products, all of which are comprised of marijuana flower. They are sold in packages with labeling in both Hebrew and English.
Medical cannabis sale and use is legal in Israel, although under strict parameters. Recreational marijuana is illegal, although it was recently decriminalized.
HEXO said the Israel rollout "is a testament to the continued work we are doing to expand our international footprint and find new markets for our award-winning products."
Teaming with Breath of Life International should spread HEXO's goods widely throughout the country. HEXO says company has a distribution network that includes Super-Pharm -- the nation's largest pharmacy chain at 258 stores.
News of a new international market is always welcome in the ever-challenging marijuana industry. But the Israeli medical cannabis space is fairly small and limited, and HEXO continues to struggle with profitability. This deal alone won't turn around the company's fortunes.