HEXO (NYSE:HEXO) was a popular stock on Monday, rising by as much as 11% on the day before settling down to reap a more than 5% gain. This seems to be related to an after-hours announcement the Canada-based marijuana company made on Friday regarding its executive ranks.
HEXO said that its previously announced hiring of Trent MacDonald as new CFO has taken effect; as of Friday, he officially occupies that position. Technically he will serve in an acting capacity until his appointment is approved by Health Canada, the country's cannabis industry regulator. Such approvals are required by federal law.
Marijuana stock investors like for their executives to have experience in industries outside of cannabis since the sector is becoming increasingly mainstream. MacDonald ticks that box -- prior to joining HEXO, he was CFO at pharmacy network operator Rx Drug Mart, and served as vice president of finance for bookstore operator Indigo.
Because the cannabis business operates at the intersection of pharmaceuticals and retail, MacDonald's straddling of both industries can really benefit his current employer.
Generally speaking, investors are high (sorry) on cannabis stocks just now. Last week, vice presidential candidate Kamala Harris pledged that if voted into power, the Biden administration would decriminalize marijuana. It's a fairly vague promise, yet it has injected optimism into a business that sorely needs it. That news, combined with the solid hire of MacDonald, is fueling the current bullishness on HEXO.