Insofar as one can find glimmers among the tension of the coronavirus outbreak, the event is causing people to stay at home, but companies to become more creative in their efforts to service those homebodies.
One is Driven Deliveries, Inc. (OTC:DRVD), California's fastest growing online cannabis retailer and direct-to-consumer logistics company, which announced that it has expanded operations at three of its fulfillment centers and launched two programs to help both industry and local businesses.
Mainstream food delivery companies have reported major increases in demand. Similarly, demand for cannabis delivery has also soared since California urged its residents to stay home, avoid crowds, and forced the closure of non-essential establishments such as bars, nightclubs, and now limited restaurant operations. Driven's main brands have all seen week over week growth of over 100%.
And the workforce is increasing, according to Salvador Villeneuva, "We are hiring in all departments to keep up with the increased demand. We are onboarding new drivers daily," he added. The company has posted openings for 50 new drivers this week, as well as 10 openings for customer service representatives in both Oakland and Los Angeles facilities to help keep up with demand.
Shares in Driven were, indeed, driven, pumped up by 12.5 cents, or 14.5%, to 98.5 cents late Thursday, on 118,000 shares.
The health-care sector in the U.S. actually declined 1.6% Thursday, while in Canada, the sector climbed 4.2%.
North of the border, and elsewhere in the cannabis industry HEXO Corp (TSX:HEXO) somehow found a bottom to its fortunes and saw its shares reaching for the rafters on Thursday.
But a lot of suspense remains for investors, as this week, the Gatineau, Quebec-based cannabis maker said it would delay the release of its upcoming quarterly results due to “certain exceptional circumstances” and expects to report a “significant” impairment that could be as much as $280 million in the quarter.
HEXO didn’t specify the cause of the impairment which led Hexo to delay its fiscal second-quarter results.
It also said it would amend its Q4 2019 and Q1 2020 management discussion and analysis after receiving comments from the Ontario Securities Commission during disclosure review by the regulator.
Hexo revealed its net revenue in its fiscal second-quarter - the three month period ending on Jan. 31 - was $17.0 million, up 17% from the prior quarter.
“The company,” says its website, “serves adult-use market under the HEXO brand, while continuing to serve its medical cannabis clients through the Hydropothecary brand.”
Shares in HEXO hiked 34 cents, or 65.4% by late afternoon Thursday to 86 cents, on volume approaching five million shares.
