Key notes to take away in this Q !! Clean up balance sheet!! -- HEXO's financial condition is positioned to be significantly strengthened by the proposed restructuring of the debt, allowing for access to up to approximately $282M in cash: -- $102M in unrestricted cash -- $180M through an equity backstop commitment from KAOS Capital and partners -- Achieved international sales growth of 36% from Q1'22 and 312% from Q2'21, including the international sales from Zenabis -- comprising 54% of the quarter's net sales -- which grew 91% quarter-over-quarter.
"Since joining HEXO in November, my top priority has been to clean up a very challenged balance sheet as a result of the Secured Note that was previously put in place," said Scott Cooper, President & CEO of HEXO. "We're now on the path to establishing a strong foundation that we expect will, once finalized, enable us to become a cash flow positive business within the next four quarters, along with continuing to grow our significant market share." "This has been a transformational quarter for the Company and we're very pleased with the progress we've made on a number of fronts," said Mark Attanasio, Chair of the Board and Executive Chair of HEXO. "We've finalized terms of a number of proposed agreements, including the recently announced strategic investment from Tilray, that will, once finalized, restructure the more onerous repayment and liquidity terms of the Secured Note. We expect this much improved structure will allow us to accelerate our growth path and unlock the full potential of the organization."