RE:RE:RE:If you spend $1.5 billionHEXO Picked up 3 companies in 2021, likely with the expectation that Biden would come through with this promise to Legalize Cannabis upon entering office. The three companies acquired by HEXO Corpy had products that sold well and had good margins but also products that overlapped with HEXO Corp and / or did not sell well enough or had lower margins.
It has to be expected that when one company purchases another that overlap between the companies will be eliminated. Products that conflict with others will also be consolidated or removed. Excess production capacity can also be expected to be removed. Unforunately this also includes staff reductions so therefore there were layoffs included in the right-sizing of the operation. HEXO had over 1200 on staff at one point with that headcount now down to apx 600, again, part of necessary cost-out moves.
Anyone who has worked at a company that was acquired by another should have seen similar things happen. Anyone in the world of business should immediately understand that HEXO Corp DID and CONTINUES to do what is necessary to streamline the operation in order to drive out cost and unnecessary expense as a means to bring the operation into a positive cash flow position.
The latest interview with the CFO noted new products to be released going into the fall. I would imagine these products will either be edibles and/or new (never seen before) products created from the technology held by one of the companies HEXO picked up. It is also reasonable to speculate that HEXO Corp willl be focusing on high margin products in order to bring in as much cash in the shortest period of time.