Colorado ExpansionGood Morning Guys,
Well I was checking my mail this morning, and catching up on the board. Realized I missed a question last night regarding how / why HEXO could be sourcing locally grown Cannabis for production of Cannabis 2.0 products out of the Colorado facility. I was considering a long drawn own explanation of how that works but opted to save myself the time...
Long story.. a bit shorter...
- HEXO is selling drinks in the US along with Molson -> We know this as fact
- HEXO does not grow Cannabis in the US -> This again we know
- HEXO stated they would source and use Hemp CBD for the drinks -> Fact from HEXO NR
From the above we can conclude that HEXO is buying either the hemp, or the extracted oil, for the production of drinks
We know companies are in business to make money, some may be non-profitable in the early years but they go into operation with the purpose of turning a profit through the development and sale of products they expect consumers will buy.
It is reasonable to believe that HEXO did not source out and purcahse a property in Colorado without first ensuring they could bring Cannabis into that facility and produce Cannabis 2.0 products at a profit.
HEXO noted that they would be working with local MSOs to provide them with access to the Powered by HEXO technology, therefore it is reasonable to believe that pricing models etc have already been worked out that show HEXO can do this... while making a profit.
All the best
Q