quinlash wrote: Foreword: The following summary has been compiled using HEXO Corp, Truss, TrussCBDusa and Molson-Coors News Releases as well as statements made by the former CEO of HEXO during numerous one on one interviews. Links are provided within this post in support of every portion of the summary (see links section below). Every effort has been made to ensure the accuracy and completeness of this post regarding HEXO Corp. Revisions are made as news develops or errors and omissions are discovered. As always, ensure you Do Your Own Due Diligence (DYODD)
HEXO Corp 2021 SUMMARY (Current as of Dec 7, 2021)
In 2020 HEXO initiated sales into the United States through its 2nd Joint Venture (JV) with its partner Molson-Coors for the sale of infused drinks in the state of Colorado. Drinks are provided through Truss in Canada and TrussCBDusa in the United States. A third JV was formed with BedFellows Arts for drinks in Nov of 2021 with these drinks activity being sold within both Canada and the U.S.
Many of the US expansion plans refer to HEXO Corp working directly with existing U.S. Multi-State-Operators (MSOs). As of Oct 6th, 2021, HEXO now has products available for online purchase in 17 US States. Internationally the company has established medical sales into Israel with on-going efforts to initiate sales within Germany and noted possible expansion into Poland.
2021 has been HEXO Corp’s year of acquisitions with the purchase of Zenabis Global,
48-North and finally the acquisition of Redecan representing the largest and most notable of the three deals. Redecan is a leader in the sale of pre-rolls but also carries Cannabis Capsules, gummies, oils and vapes. Both Zenabis and Redecan products are carried by Shopper’s DrugMart, a Nation-wide chain of drug stores within the Canadian Market and is considered one of the largest (and most profitable) Canadian producers of pre-rolls. The Redecan deal was valued at $1.2 Billion Dollars with an implied HEXO shareprice of $7.53 per share.
As of Sept 2nd all three acquisitions have been approved by shareholders with the three companies now rolling up under HEXO Corp. The new additions to HEXO Corp added production capacity but most importantly a host of new product lines and market share covering everything from edibles and pre-rolls to health and beauty products. According to HEXO Corp these additions place the operation firmly within the top 2 licensed producers in the Canadian Market based on recreational cannabis sales. The number 1 spot will now be held by either Tilray or HEXO Corp with both companies taking lead over Canopy Growth as well as Aurora Cannabis (Refer to Redecan Investors Deck below).
To-date only one QTR report has been produced that captures a portion of the incremental sales to be seen from these acquisitions. This report was the 2021 Fiscal Year End report and was provided Oct 29, 2021. Sales figures showed a historical high in sales for the company with numbers increasing for both gross and net with year over year gains of 57% and quarter over quarter sales of 71%. Along with the Year End report Price Waterhouse also issued its auditors report that noted a concern with HEXO Corps ability to repay debentures coming due in early 2023. The report also noted that the auditor is assuming that the debentures would indeed be addressed in time and did not change it’s rating on the company (visit www.sedar.com for the full 6-page auditor report, see item 2 in the table of contents).
On Dec 14th, 2021 the company will be providing its first Quarter Report that will show 100% full benefit from Zenabis Global will bring to HEXO Corp with a minimum of 2 months of sales being reported by 48-North along with a minimum of 2 months of sales being reported by Redecan. The March 17th, 2022 report will be the first to reflect a complete quarter of sales from each of the 3 new acquisitions and may include additional sales numbers coming in as a result of its US expansion into 17 states.
In May 2021, the company announced the acquisition of a production facility in Colorado and noted that this would be undergoing upgrades to produce products for MSOs seeking to take advantage of the “Powered by HEXO” patented technology. At this point there is no indication that the company plans to cultivate Cannabis within the US and are opting to source raw product from local producers. Revenue will be made through the sale of these Cannabis 2.0 products as well as royalty payments for the use of HEXO’s patents.
During an interview at the 2021 Canaccord Conference the CEO disclosed that HEXO has now signed its new Consumer Packaged Goods (CPG) Fortune 200 partner. Food products were noted during the interview and that these new products would be tested in the Province of Quebec, additional details regarding US Expansion as well as the introduction of Redecan Pre-Rolls into the US Market were discussed in the same interview. At this time HEXO Corp has yet to formally notify the Market that a Fortune 200 has been signed. The name of the Fortune 200 company has also not been publicly disclosed.
In order to fund the Redecan acquisition, as well as the on-going efforts to expand into the US, HEXO performed a capital raise of nearly $145 USD Million Dollars on August 24, 2021 at a unit price of $2.95 USD.
Oct 20, 2021 the Founding Father of the Company, Sebastien St-Louis, and then CEO was reported as having stepped aside as part of a strategic restructuring. Mr. St-Louis was succeeded by the CEO of Truss Beverages, Scott Cooper, who originally joined Truss Beverages from Molson-Coors. Mr. Cooper’s new role as President and CEO of HEXO Corp was made official on Nov 19th, 2021.
Nov 9th, 2021, the Company disclosed that it will be selling off the components of Zenabis Global as well as 48 North that are not necessary for HEXO Corp to achieve its longer-term objectives. HEXO Corp noted that much of the production capacity needed to support the operation will be addressed through its state-of-the-art automated facility at Belleville. As part of the rightsizing upwards of 155 employees will either be relocated or assisted in finding new employment.
In addition to the Canadian and US Markets HEXO has an established Medical Cannabis Supply agreement in place with Israel with on-going efforts to initiate sales within Germany. In one interview the former CEO of HEXO Corp noted the possibility of supplying Poland with Medical grade cannabis as well as noted interest in expansion into California through a special purpose vehicle. Zenabis is also reported as having a supply agreement in place with Australia.
HEXO Wildcards
HEXO is partnered with Molson-Coors twice to produce Cannabis infused drinks. Molson itself partnered with Coke twice for a line of Mexican Drinks being sold in the US as well as Canada. Molson Coors has partnered with Dwayne Johnson “The Rock” for Zoa Energy Drinks. If either Coke or Dwayne Johnson opt to enter the Cannabis Infused Drink Market, it is possible that HEXO Corp could benefit directly or indirectly from such a development.
*** News Note:
Nov 18th, 2021 A Newspaper out of Quebec, that has been classified as a Tabloid by the Globe and Mail, published a article that implied there was a connection between Redecan (now part of HEXO) and the Hell’s Angel’s. The article relied heavily on some Instagram Photos showing a Redecan employee with a member of the Motorcycle Club. No evidence outside the photos was presented to support the implied association.
While HEXO Corp did issue a statement via Twitter noting that it holds to the highest legal standards as well as made statements to the Globe and Mail denouncing the article as an attack on the company no further news is available at this time. HEXO is not under investigation due to this however they are going through the necessary steps to ensure all legal requirements are being complied with.
(Nov 25, 2021) Globe and Mail Follow-Up to Tabloid Article
https://www.theglobeandmail.com/business/article-quebec-authorities-questioning-cannabis-producer-hexo/
Alternative Link to view Globe and Mail Article (Copied to StockHouse)
https://stockhouse.com/companies/bullboard?symbol=t.hexo&postid=34203334
COMPANY PRESENTATIONS AND INTERVIEWS
(Dec 7, 20210) HEXO to Report Q1 2022 Financial Results and Host Investor Webcast
https://www.globenewswire.com/news-release/2021/12/07/2347217/0/en/HEXO-to-Report-Q1-2022-Financial-Results-and-Host-Investor-Webcast.html
(Oct 5, 2021) – AGP’s Virtual Fall Consumer MJ Conference (HEXO CEO)
https://www.youtube.com/watch?v=NEt8irlPLgU&t=612s
(Sept 1, 2021) This is BIG – Splash Video
https://youtu.be/rZJjGl1R3y0
(Aug 20, 2021) – BNN Interview with HEXO CEO regarding US Expansion
https://www.bnnbloomberg.ca/marijuana/video/shares-of-hexo-plunge-nearly-30-after-public-offering-news~2264114?fbclid=IwAR1vDa38XbajlpqALMW3yQJKt_eLksYkRpb9TQjKpz-6AVKhRNHtKF5xVRs
(Aug 10, 2021) CEO Fireside Chat at 2021 Cannacord Conference (New CPG Partner Signed)
https://youtu.be/KPlMQlLYE-g
Comments include:
- 17% Canadian Market Share
- Number 1 in a multiple of categories
- Redecan Reddies best for US Market
- US THC business to start building out
- HEXO expanding US Sales to more states very soon
- Best Cannabis drink sales in the world
- $156 Million Net Revenue trailing 9 months with Redecan, 44% combined margin
- 169% sales growth Redecan combined with HEXO (excluding Zenabis sales)
- Next 3 to 6 months to see more expansion for the US
- Fortune 200 company now signed with HEXO (New Foods mentioned)
- Product testing on-going in Quebec, longer term to be expanded into US
- Cross border consolidation to be expected with US Federal Cannabis Legalization
- HEXO planning to work with local state suppliers and Multi-State Operators (MSOs)
- HEXO to be a US manufacturer
HEXO products available in the US include VeryWell beverages, Verywell Drops, in Jan HEXO to expand to select states and supply Redecan Reddies and Gelcaps
- Expansion of Redecan products in Quebec
- 60% of Canadian Retail stores carry HEXO products
- High levels (85%) for rebuy rate on HEXO / Truss CBD infused drinks
- Canada a 4 Billion Dollar Market today, US Market also expanding
- (Min 7:25) HEXO about to launch with Fortune 200 Food Company
- HEXO largest Cannabis LP by sales with 1 10th the Marketcap to competitors
(July 13, 2021) Molson-Coors Announces Expansion of CBD Drinks across Colorado
https://www.molsoncoorsblog.com/news/truss-cbd-usa-plans-expansion-across-colorado
(June 16, 2021) Cantor Fitzgerald Fireside Chat with HEXO CEO Sebastien S.L. & CFO Trent M.
https://www.youtube.com/watch?v=gvStRypSOpA
(June 12, 2021) HEXO CEO on BNN
https://www.bnnbloomberg.ca/marijuana/video/focused-product-strategy-can-bring-us-ahead-in-the-u-s-market-hexo-ceo~2222003
Video Highlights (min:sec):
(Min 5:30) Fully activate Belleville center By September. Bulk package from cultivation facility to retail shelf in 5 days.
(Min 6:35) Some analysts find the price paid for Redecan considerably low versus was they are actually valued at. Received an offer at 1.4B and turned it down.
(Min 7:15) Redecan numbers will blow the market away. They need Redecan audit before they can post numbers. Making sure they cross Ts and dot the Is (this has since been provided, see link provided below)
(Min 8:30) They want to bring that #1 portfolio from Canada to the USA. They've got great margins and he thinks that MSO will be interested in getting those excellent products plus excellent margins.
June 11, 2021 – Interview with HEXO CEO
https://www.youtube.com/watch?v=MBOiRu7Z15Y
Comments include:
- HEXO becoming #1 in Canada as major deals close
- Environmental concerns / changes being made by HEXO (See HEXO News Releases below)
- Purchase of Redecan which has seen 169% Growth Year over Year
- SSL believes there will be only 3 major players in the sector
- Worldwide expansion plans
- HEXO already in the US and selling product
- Working with Molson to expand to more states – coming Soon
- Functional Foods expansion – Legal to sell in US today
- Prepping the business to expand as soon as rules change in the US
- Number 1 producer in a number of Canadian Provinces
- Blew Canopy out of the water with drinks
- HEXO mostly focused on US Expansion at this time but also planning on Worldwide expansion
- Products currently being sold in Israel
- Discussion regarding distribution of product overseas through Molson sales channels
- Aiming to EPS positive in a short period of time
(May 28, 2021) CNN Interview with HEXO CEO Regarding Redecan Acquisition (Video)
https://www.youtube.com/watch?v=Z50nIYXQRwM&t=10s
Comments Include:
- Moved from 17th place to top spot for recreational sales
- Goal to have HEXO as the Coke coca of Cannabis
(May 28, 2021) HEXO + Redecan (Splash Video)
https://www.youtube.com/watch?v=zHwI9ZnNCXY
(May 28, 2021) HEXO + Redecan Investors Deck
https://www.hexocorp.com/investors/
Slide # 9 Reports Redecan as having 169% Year over Year increase in Sales as well as 50% + Gross Margins
Slide # 18 Shows HEXO expecting $32 Million in Annual Savings Post-Zenabis + 48 North deals closing
Additional Link – Redecan Products carried by Shoppers Drugmart
https://cannabis.shoppersdrugmart.ca/en_CA/lps/redecan
(May 28, 2021) HEXO NOW #1 Video
https://www.youtube.com/watch?v=zHwI9ZnNCXY
(May 20, 2021) BMO Capital Markets 16th Annual Farm to Market Conference – Video Interview with HEXO CEO and CFO
https://www.youtube.com/watch?v=plKNIcTXD70&t=23s
Video Highlights (min:sec):
Merger and Acquisition discussion regarding Zenabis and 48-North
HEXO seeking 20% Canadian Market Share
Expansion of product line in order to approach larger partner
New Bake Sale Product and Original Stash products targeting Black-market Customers (and winning)
How HEXO is addressing inventory management to avoid write-downs,
UP! Product line supporting 20% + THC levels
100 Strain Strategy by year end of Calendar Year 2021
Powered By HEXO strategy for Consumer Packaged Goods (CPG) partners, moving to “functional foods”, (eg Pet Care and Cosmetics),
(Min 18:50) HEXO displaced major CPG producers in Colorado with drink launch,
(Min 20:30) 2nd Largest Patent Holder in Sector,
(Min 22:10) Colorado as launching location into the rest of the US,
(Min 23:40) Powered by HEXO structure compared to Intel Business Model,
(Min 27:00) HEXO has THC Zoning in US,
(Min 31:15) HEXO Drink re-buy rate for first time buyers of Truss drinks apx 85%.
(May 11, 2021) Canaccord Genuity’s 5th Annual Global Cannabis Conference – Interview with HEXO CEO
https://www.youtube.com/watch?v=oFFW1D7ZMyk&t=171s
(Feb 16, 2021) HEXO PowerPoint / PDF Summary Presentation Regarding Zenabis Deal
https://www.zenabis.com/wp-content/uploads/slider/hexo-corp-project-zebra_2021-03-25_12_10_21/hexo_corp.pdf?fbclid=IwAR0FlnKRYtEoOPfI0y6BKEgGN04sNV8HMzc7zYYmF4_5w1zOdoWTe_Oxv1c
Note: Presentation compares HEXO to other major players including the Aphria / Tilray combined operation and shows HEXO becoming a top three producer in the Canadian Market.
2021 ICR Presentation with HEXO CEO (discussion on US expansion into Colorado and beyond)
https://icrinc.touchcast.com/showtime/icr-conference/embed/6a310d2c-3a67-6022-c73f-165d733a591a
Note: Starting from minute marker 19:20 the CEO comments on how HEXO has access to Molson’s relationship with Coke and Dwayne Johnson “The Rock”
(Dec 9th, 2020) - Video HEXO Virtually Rolls out New Belleville Facility
https://youtu.be/nhTKnCRhzv4
Link to HEXO Video Library Showing Inside the Operation
https://www.hexocorp.com/videos/
Powered By HEXO Summary (HEXO Page)
https://www.hexocorp.com/powered-by-hexo/?fbclid=IwAR1mcH41Fy_P3BnHaM3MXrops-atTYVY7mnRXBZIzYpbk_OZSOT2YmE4xT0
HEXO AND MOLSON-COORS NEWS RELEASES:
(Nov 19, 2021) HEXO Announces Changes to its Board of Directors
https://www.globenewswire.com/news-release/2021/11/19/2338110/0/en/HEXO-Announces-Changes-to-its-Board-of-Directors.html
(Nov 9, 2021) HEXO Provides Integration Update
https://www.globenewswire.com/news-release/2021/11/09/2330623/0/en/HEXO-Provides-Integration-Update.html
Note: The above News Release details the disposal of facilities and staff reductions found to be unnecessary to fulfill the companies longer term business objectives.
(Nov 4, 2021) Redecan Expands Their Redees Line-Up with New Strains, More Bud and Holiday Spirit
https://www.newswire.ca/news-releases/redecan-expands-their-redees-line-up-with-new-strains-more-bud-and-holiday-spirit-863314732.html?s=09&fbclid=IwAR1cY2JiuwvNCKZGdV4EOAXqPG2PT1qVuvmgDCh1hcR6Y5j1lyNKD-yqpSU
(Nov 1, 2021) Truss Beverage Co. Expands into Partnerships with First Collaborative Brand, Bedfellow Liquid Arts
https://www.globenewswire.com/news-release/2021/11/01/2324132/0/en/Truss-Beverage-Co-Expands-into-Partnerships-with-First-Collaborative-Brand-Bedfellow-Liquid-Arts.html?fbclid=IwAR0keDYn6Wqgsopq4MdeHmcocP72l9l8Hhevc7xu-4wL4V2vkE85GQH3O2A
(Oct 20, 2021) HEXO Announces Scott Cooper as President & CEO
https://www.globenewswire.com/news-release/2021/10/20/2317236/0/en/HEXO-Announces-Scott-Cooper-as-President-CEO.html
(Oct 12, 2021) Molson Coors and The Coca-Cola Company Expand Offering to Bring Topo Chico Hard Seltzer® to Canada
https://www.newswire.ca/news-releases/molson-coors-and-the-coca-cola-company-expand-offering-to-bring-topo-chico-hard-seltzer-r-to-canada-855571416.html
(Oct 6, 2021) Truss CBD USA, A Molson Coors And HEXO Corp Joint Venture, Expands Veryvell™ CBD Beverages Semi-Nationally
https://www.prnewswire.com/news-releases/truss-cbd-usa-a-molson-coors-and-hexo-corp-joint-venture-expands-veryvell-cbd-beverages-semi-nationally-301393497.html
Additional Link (Article) – Oct 11, 2021 Molson Coors, HEXO Corp Serve Up CBD Sparkling Water in More States
https://www.nutraingredients-usa.com/Article/2021/10/11/Molson-Coors-Hexo-Corp-serve-up-CBD-sparkling-water-in-more-states
(Sept 16, 2021) HEXO Achieves Carbon Neutrality
https://www.globenewswire.com/news-release/2021/09/16/2298232/0/en/HEXO-Achieves-Carbon-Neutrality.html
(Sept 15, 2021) HEXO to participate in Citi’s 5th Annual Consumer Disruptive Growth Conference
https://www.globenewswire.com/news-release/2021/09/15/2297316/0/en/HEXO-to-participate-in-Citi-s-5th-Annual-Consumer-Disruptive-Growth-Conference.html
(Sept 1, 2021) HEXO and 48North announce closing of arrangement
https://www.globenewswire.com/news-release/2021/09/01/2289876/0/en/HEXO-and-48North-announce-closing-of-arrangement.html
(Aug 30, 2021) HEXO announces closing of Redecan transaction
https://www.globenewswire.com/news-release/2021/08/30/2288543/0/en/HEXO-announces-closing-of-Redecan-transaction.html
(Aug 26, 2021) HEXO appoints Chief People & Culture Officer
https://www.globenewswire.com/news-release/2021/08/26/2286876/0/en/HEXO-appoints-Chief-People-Culture-Officer.html
(Aug 24, 2021) HEXO Corp. Closes US$144.8 Million Underwritten Public Offering
https://www.globenewswire.com/news-release/2021/08/24/2285933/0/en/HEXO-Corp-Closes-US-144-8-Million-Underwritten-Public-Offering.html
(Aug 25, 2021) HEXO Corp.’s Shareholders Overwhelmingly Approve Redecan Transaction and Senior Secured Convertible Note Financing Share Reserve
https://www.globenewswire.com/news-release/2021/08/25/2286658/0/en/HEXO-Corp-s-Shareholders-Overwhelmingly-Approve-Redecan-Transaction-and-Senior-Secured-Convertible-Note-Financing-Share-Reserve.html
(Aug 24, 2021) HEXO to Begin Trading on the Nasdaq
https://www.globenewswire.com/news-release/2021/08/24/2285373/0/en/HEXO-to-Begin-Trading-on-the-Nasdaq.html
(Aug 16, 2021) HEXO expands its global leadership team with the appointment of Chief Commercial Officer
https://www.globenewswire.com/news-release/2021/08/16/2280923/0/en/HEXO-expands-its-global-leadership-team-with-the-appointment-of-Chief-Commercial-Officer.html
(July 14, 2021) HEXO provides update on Redecan acquisition
https://www.globenewswire.com/news-release/2021/07/14/2262586/0/en/HEXO-provides-update-on-Redecan-acquisition.html
(June 28, 2021) HEXO Corp formalizes its US presence with acquisition of production facility in Colorado
https://www.globenewswire.com/news-release/2021/06/28/2253703/0/en/HEXO-Corp-formalizes-its-US-presence-with-acquisition-of-production-facility-in-Colorado.html
Additional Link: News Article Showing the Facility
https://www.affinityrepartners.com/hexo-usa-acquires-industrial-condos/
Additional Link: (MJ Biz Daily) – Notes on cost of purchase as well as upgrades
https://mjbizdaily.com/Canadian-cannabis-producer-hexo-to-enter-us-with-colorado-production-facility/
NOTE: The purchase of the facility is noted as being apx $6 Million with upgrades expected to cost in the range of $16.5 to $49.5 Million
(June 9, 2021) HEXO Corp wins dismissal of NY state court shareholder class action
https://www.globenewswire.com/news-release/2021/06/09/2244200/0/en/HEXO-Corp-wins-dismissal-of-NY-state-court-shareholder-class-action.html
(June 8, 2021) HEXO Corp commits to ESG leadership, starts by offsetting 100% of carbon emissions and plastic packaging
https://www.globenewswire.com/news-release/2021/06/08/2243398/0/en/HEXO-Corp-commits-to-ESG-leadership-starts-by-offsetting-100-of-carbon-emissions-and-plastic-packaging.html
Note: As per the 2021 Year end MD&A Report, HEXO Corp entered into an agreement with Offsetters, a Vancouver-based organization that supports renewable energy and carbon projects across the world, and became carbon neutral in September 2021, as well as offseting 100% of the Company’s operational carbon emissions in addition to the personal emissions of our 1,200 employees.
(June 1, 2021) HEXO Corp. and Zenabis Global Inc. Announce Closing of Arrangement
https://www.globenewswire.com/news-release/2021/06/01/2239519/0/en/HEXO-Corp-and-Zenabis-Global-Inc-Announce-Closing-of-Arrangement.html
(May 28, 2021) HEXO Corp announces acquisition of Redecan to create Canadian market leader in adult-use sales
https://www.globenewswire.com/fr/news-release/2021/05/28/2238104/0/en/HEXO-Corp-announces-acquisition-of-Redecan-to-create-Canadian-market-leader-in-adult-use-sales.html
Taken From Above News Release
“With today’s announcement, we believe that we are on the verge of surpassing that objective to become the no.1 licensed producer by recreational market share. Building on our strong market momentum, the combination of HEXO and Redecan reinforces our position as an industry leader and creates a robust foundation for growth, efficiency at scale and improved financial results.”
(May 27, 2021) HEXO Corp Announces Public Offering of Senior Secured Convertible Notes
https://www.globenewswire.com/news-release/2021/05/28/2237912/0/en/HEXO-Corp-Announces-Public-Offering-of-Senior-Secured-Convertible-Notes.html
Taken from Above News Release
The Company expects to use substantially all of the net proceeds from the Offering to fund the acquisition (the “Potential Acquisition”), if it occurs, of a large Canadian licensed producer (the “Target Business”). The Company has not yet entered into a definitive agreement for the Potential Acquisition.
(May 17, 2021) HEXO Corp to acquire 48North Cannabis Corp.
https://www.globenewswire.com/news-release/2021/05/17/2230497/0/en/HEXO-Corp-to-acquire-48North-Cannabis-Corp.html
Taken from Above News Release:
- Diversifies product portfolio: The addition of 48North’s innovative product offering, including topicals, bath and intimacy products provides a strong base for potential future CPG partnerships in the US, Canada and internationally.
- Offers accretive synergies: HEXO estimates that, assuming completion of the Transaction, it may realize annual synergies of up to $12 million within one year of close, through cost of goods reductions, additional capacity utilization in HEXO’s Belleville Centre of Excellence and selling, general and administrative savings, which, if realized, should allow HEXO to continue its path towards positive earnings.
(May 14, 2021) HEXO Corp Announces Filing of Preliminary Base Shelf Prospectus for Debt and Planned Reduction in Previously Filed Shelf Prospectus for Equity
https://www.globenewswire.com/news-release/2021/05/14/2230199/0/en/HEXO-Corp-Announces-Filing-of-Preliminary-Base-Shelf-Prospectus-for-Debt-and-Planned-Reduction-in-Previously-Filed-Shelf-Prospectus-for-Equity.html
(May 14, 2021) HEXO Corp announces US production facility in Colorado
https://www.globenewswire.com/news-release/2021/05/14/2229789/0/en/HEXO-Corp-announces-US-production-facility-in-Colorado.html
Taken From Above News Release
The ~50,000 sq. ft. facility, located in Northern Colorado, will provide US CPGs and consumers access to the Powered by HEXO® technology.
Note: The company has disclosed that the facility cost $6 Million USD to purchase and between $16.5 and $49 Million USD to retrofit
HEXO’s first in the US, is zoned for production of a full range of cannabinoids and offers multiple operational capabilities. The site will support Powered by HEXO initiatives across the country, in compliance with all applicable laws and regulations.
(May 14, 2021) ZENABIS MALTESE JOINT VENTURE PARTNER ZENPHARM RECEIVES LICENSE FOR PRODUCTION & DISTRIBUTION OF CANNABIS
https://www.zenabis.com/zenabis-maltese-joint-venture-partner-zenpharm-receives-license-for-production-distribution-of-cannabis/
Taken from Above News Release
The Medicinal Cannabis License allows ZenPharm to commence commercial shipments to the European Union, where Germany is ZenPharm’s most prominent target market. ZenPharm has an executed supply agreement with a German-based customer to supply a minimum volume of 500 kg per year. To that end, ZenPharm will be accepting shipments of up to 300kg from Zenabis Atholville through the end of this calendar year.
“… launching finished cannabis products under its own brand for distribution within the Maltese medicinal cannabis market, with similar entry into the Polish Market expected in the Q1 2022”
(May 13, 2021) HEXO Corp and REQ Announce Brand Partnership for “Powered By HEXO®” Expansion into United States
https://www.globenewswire.com/news-release/2021/05/13/2228927/0/en/HEXO-Corp-and-REQ-Announce-Brand-Partnership-for-Powered-By-HEXO-Expansion-into-United-States.html
Taken From Above News Release
As U.S. Agency of Record, REQ will assist HEXO as it continues to expand its footprint in the U.S. and ramps up to support the growth initiatives of Truss CBD USA, its joint venture with Molson Coors, and for potential non-beverage CPG partners with whom the Company is in ongoing discussions.
Note: REQ has worked with such companies as eBay, MasterCard and Amazon.
Direct Link to REQ Marketing Website (Companies they have worked with)
https://req.co/work/featured-work
(May 11, 2021) HEXO Corp Announces At-the-Market Offering of up to C$150,000,000
https://www.globenewswire.com/news-release/2021/05/11/2227270/0/en/HEXO-Corp-Announces-At-the-Market-Offering-of-up-to-C-150-000-000.html
Taken From Above News Release
The Company expects to use the net proceeds from the ATM Program for general corporate purposes, which may include: (i) costs associated with the Company’s U.S. expansion plans including the contemplated acquisition of a facility in the State of Colorado and its subsequent retrofitting and improvement; (ii) capital expenditures, including potential capital expenditures to make additional improvements to the production lines at the Company’s Belleville, Ontario facility; (iii) potential future acquisitions; (iv) working capital, including replenishing existing cash resources and working capital which will be used to fund certain transaction and integration costs and minimum debt repayments related to the Company’s proposed acquisition of Zenabis Global Inc. (“Zenabis”); and (v) repayment of additional debts owed by Zenabis following the completion of the Zenabis acquisition.
(May 3, 2021) - HEXO Corp Announces Repayment of Credit Facility
https://www.globenewswire.com/news-release/2021/05/03/2221193/0/en/HEXO-Corp-Announces-Repayment-of-Credit-Facility.html
Taken From Above News Release
“We believe repayment of the credit facility provides HEXO with flexibility as we continue to execute on our US expansion plans and our goal to become a top two Canadian LP by adult-use recreational cannabis sales,” said HEXO CEO and co-founder Sebastien St-Louis. “We would like to thank our lenders for their support, which has contributed to HEXO’s success to date.”
(Apr 28, 2021) – HEXO Corp receives Control Union Medical Cannabis Standard GACP certification
https://www.globenewswire.com/news-release/2021/04/28/2218430/0/en/HEXO-Corp-receives-Control-Union-Medical-Cannabis-Standard-GACP-certification.html
Taken From Above News Release:
CUMCS-GACP certification represents a standard of quality and consistency for cannabis propagation, cultivation and post-harvest processes and is compliant with both the World Health Organization and European Medicines Agency Good Agricultural and Collection Practice guidelines
(Apr 21, 2021) – HEXO Wins 2021 Atomic Award
https://atomicawards.strategyonline.ca/winners/winner/2021/?e=110149&n=Veryvell
(Apr 15, 2021) - HEXO Corp Announces Filing of $1.2B Preliminary Base Shelf Prospectus
https://www.globenewswire.com/news-release/2021/04/15/2211308/0/en/HEXO-Corp-Announces-Filing-of-1-2B-Preliminary-Base-Shelf-Prospectus.html
Taken From Above News Release:
“We made the decision to file this new base shelf prospectus and registration statement to provide maximum flexibility as we continue to pursue strategic initiatives in both the United States and Canada,” said HEXO CEO and co-founder Sebastien St-Louis. “We have now started to deploy capital in the United States, are remaining active in M&A and are in ongoing discussions with potential non-beverage CPG partners which we expect will require additional capital as we continue to execute on our growth and expansion strategy.”
(Apr 14, 2021 – HEXO / Molson JV – Truss Launch New Drinks for Summer
https://www.benzinga.com/markets/cannabis/21/04/20621085/molson-coors-hexo-cannabis-jv-truss-beverage-to-launch-six-new-products-this-summer
(Apr 8, 2021) HEXO’s Partner Molson Coors Nominates Julia M. Brown as an Independent Director to Join Its Board of Directors
https://ir.molsoncoors.com/news/press-release-details/2021/Molson-Coors-Nominates-Julia-M.-Brown-as-an-Independent-Director-to-Join-Its-Board-of-Directors/default.aspx
Note: As outlined in the news out from Molson, Mrs. Brown has been previously employed with Mars-Wrigley as well as Kraft Foods.
(Apr 6, 2021) – HEXO Launches Bake Sale – New Cannabis Baking Flower
https://www.globenewswire.com/news-release/2021/04/06/2204803/0/en/HEXO-launches-first-of-its-kind-Bake-Sale-value-brand.html
(Mar 26, 2021) – HEXO CFO Trent McDonald Hosts Reddit Ask-Me-Anything (AMA) Session
https://www.reddit.com/r/TheCannalysts/comments/m8rljy/hi_this_is_trent_macdonald_cfo_of_hexo_corp_ill/
Note: Trent addressed a number of topics from US Expansion to what a US Strategy would look like. He also noted how undervalued the stock is in relation to others in the industry based on sales (this compares to share count vs sales dollars, PS-Ratio math helps explain what he is referring to)
(Mar 18, 2021) – HEXO Reports 2021 Q2 Results
https://www.globenewswire.com/news-release/2021/03/18/2195226/0/en/HEXO-Corp-announces-positive-adjusted-EBITDA-and-94-increase-in-net-revenue-from-prior-year.html
Note: HEXO Achieved positive adjusted EBITDA, along with the seventh consecutive quarter of adjusted EBITDA improvement. This is a milestone yet to be achieved by Canopy Growth or Aurora Cannabis
(Mar 18th, 2021) HEXO - Earnings Call Transcript (2021 Q2 Report)
https://news.alphastreet.com/hexo-corp-hexo-q2-2021-earnings-call-transcript/
(Feb 22, 2021) – HEXO and Namaste Tech Sign Agreement for New Product Releases
https://www.globenewswire.com/news-release/2021/02/22/2179988/0/en/Namaste-Technologies-Subsidiary-CannMart-Signs-National-Supply-Agreement-with-HEXO.html
(Feb 16, 2021) HEXO Corp. to acquire Zenabis Global Inc.
https://www.globenewswire.com/news-release/2021/02/16/2176435/0/en/HEXO-Corp-to-acquire-Zenabis-Global-Inc.html
(Feb 2, 2021) - HEXO Book Launch
https://obj.ca/article/local/book-excerpt-billion-dollar-start
(Jan 13, 2021) Truss CBD USA, a HEXO Corp and Molson Coors joint venture, launches Veryvell sparkling CBD water in Colorado
https://www.globenewswire.com/news-release/2021/01/13/2158006/0/en/Truss-CBD-USA-a-HEXO-Corp-and-Molson-Coors-joint-venture-launches-Veryvell-sparkling-CBD-water-in-Colorado.html
(Jan 12, 2021) Dwayne ‘The Rock’ Johnson partners with Molson Coors for nonalcoholic energy drink
https://www.msn.com/en-us/money/smallbusiness/dwayne-the-rock-johnson-partners-with-molson-coors-for-nonalcoholic-energy-drink/ar-BB1cEP6r
FINANCIALS AND QUARTER REPORTS
Foreword: Links to the trailing four Quarter Reports are provided below. Visit the HEXO homepage and / or www.Sedar.com for additional information. HEXO’s 2022 Q1 report is expected out Dec 14th, 2021.
HEXO - Investor Relations Homepage - Quarter Reports and MD&A Reports (Also see www.sedar.com for more details)
https://www.hexocorp.com/investors/
(Oct 29, 2021) HEXO Corp Reports Fourth Quarter Fiscal 2021 Financial Results
https://www.globenewswire.com/news-release/2021/10/29/2323554/0/en/HEXO-Reports-Fourth-Quarter-and-Fiscal-Year-2021-Financial-Results-Highlighting-Strong-Growth.html
(Oct 29, 2021) Forth QTR Earnings Call Transcript
https://seekingalpha.com/amp/article/4463513-hexos-hexo-ceo-scott-cooper-on-q4-2021-results-earnings-call-transcript
HEXO Corp Reports Third Quarter Fiscal 2021 Financial Results
https://www.globenewswire.com/news-release/2021/06/14/2246424/0/en/HEXO-Corp-Reports-Third-Quarter-Fiscal-2021-Financial-Results.html
(June 14, 2021) – Audio file of HEXO 2021 Q3 Earnings Call
https://www.youtube.com/watch?v=V7kE3LeVb9A
(March 3, 2021) HEXO Corp announces positive adjusted EBITDA and 94% increase in net revenue from prior year (2021 Q2 Report)
https://www.globenewswire.com/news-release/2021/03/18/2195226/0/en/HEXO-Corp-announces-positive-adjusted-EBITDA-and-94-increase-in-net-revenue-from-prior-year.html
(Dec 14, 2020) HEXO Corp Reports First Quarter Fiscal 2021 Financial Results (2021 Q1 Report)
https://www.globenewswire.com/news-release/2020/12/14/2144424/0/en/HEXO-Corp-Reports-First-Quarter-Fiscal-2021-Financial-Results.html
(Oct 29, 2020) HEXO Corp Reports Financial Results for the Fourth Quarter and Fiscal Year 2020 (2020 Year End / Q4 Report)
https://www.globenewswire.com/news-release/2020/10/29/2117487/0/en/HEXO-Corp-Reports-Financial-Results-for-the-Fourth-Quarter-and-Fiscal-Year-2020.html
HEXO EARNINGS CALL TRANSCRIPT LIBRARY
https://seekingalpha.com/symbol/HEXO/earnings/transcripts
NOTABLE NEWS FROM 2020 AND EARLIER
(Dec 23, 2020) – HEXO Completes 4:1 Stock Consolidation.
HEXO consolidated shares at a ratio of 4:1 on Dec 23, 2020 in order to comply with NYSE minimum listing requirements. This occurred during Covid while the entire Cannabis Sector was largely being ignored due to the pandemic.
(July 9, 2020) HEXO established a Medical Cannabis Supply contract with Israel
https://www.globenewswire.com/news-release/2020/07/09/2059798/0/en/HEXO-launches-medical-cannabis-products-in-Israel.html
(April 15, 2020) Molson Coors and HEXO Corp Expand Partnership with Joint Venture in Colorado
https://www.businesswire.com/news/home/20200415005395/en/Molson-Coors-HEXO-Corp-Expand-Partnership-Joint
Additional Link: Molson / HEXO JV in the US – TrussCBDusa Homepage
https://trusscbdusa.com/
(Sept 29, 2020) Molson Coors to Bring Coke’s Alcoholic Topo Chico to U.S.
https://www.msn.com/EN-US/money/companies/molson-coors-to-bring-coke-s-alcoholic-topo-chico-to-u-s/ar-BB19xmoa
(Aug 31, 2020) Zenabis Announces First Shipment to Australia
https://www.hexocorp.com/2020/08/31/zenabis-announces-first-shipment-to-australia/
(Oct 31, 2019) Molson Coors drops ‘Brewing Co’ from its name as it looks beyond beer
https://www.cnbc.com/2019/10/31/molson-coors-drops-brewing-co-from-its-name-as-it-looks-beyond-beer.html#:~:text=Molson%20Coors%20Brewing%20Company%2C%20one%20of%20the%20world%E2%80%99s,name%20will%20shift%20to%20%E2%80%9CMolson%20Coors%20Beverage%20Company.%E2%80%9D
Taken From Above News Release:
Molson Coors Brewing Company, one of the world’s largest brewers, is to rename itself in an effort to “expand beyond beer.”
Louisa Osmond, a professor of marketing at Edinburgh Business School said the name change will let Molson Coors adapt to consumers’ changing tastes.
Research Links:
Library of all HEXO, NewStrike Resources, and Zenabis Global News Releases
https://www.hexocorp.com/press-releases/
HEXO – Institutional Ownership Information
https://fintel.io/so/us/hexo
HEXO – Insider Trading Information
https://www.canadianinsider.com/node/7?menu_tickersearch=HEXO+%7C+HEXO
Note: Most recent activity includes Dr. Munzar purchasing just under 160,000 shares on the open market at a price of $1.73 CDN
HEXO - Price to Sales Ratio Data
https://ycharts.com/companies/HEXO.TO/ps_ratio
HEXO Historical Daily Shareprice Data
https://ca.finance.yahoo.com/quote/HEXO.TO/history/
HEXO Live Trading Link for Extended Hours Trading (Stated in US Dollars)
https://www.marketwatch.com/investing/stock/hexo
Disclaimer: StockHouse user Quinlash holds long positions in HEXO Corp with a planned timeframe concluding post-US Cannabis Legalization or early to mid 2023 (whichever comes last) due to planned retirement.