OTTAWA, Nov. 09, 2021 (GLOBE NEWSWIRE) – HEXO Corp (“HEXO” or the “Company”) (TSX: HEXO; NASDAQ: HEXO) today released an update on the integration plan launched at following its recent acquisitions of Redecan, Zenabis Global Inc. (“Zenabis”) and 48North Cannabis Corp. (“48North”). In a few months, HEXO will cease its activities in three of its production units in order to regroup the activities of cultivation, manufacture and distribution of its products in its main facilities.
“As part of the integration planning process, we performed a comprehensive analysis of all HEXO facilities to assess their suitability, capacity and efficiency, and we decided to centralize activities in our facilities. key, said Scott Cooper, CEO of HEXO. This decision is critical to achieving our immediate priority of ensuring the integration of recently acquired businesses in order to drive growth and profitability through the commercialization of consumer cannabis products. “
“We are confident that our core facilities as well as our strategic partnerships will allow us to have a sufficient supply of high-quality cannabis to meet demand,” continued Mr. Cooper. This very difficult decision is one of the keys to our integration plan, and we believe that it positions HEXO in the best possible way for its continued growth. I would like to thank all the employees of Kirkland Lake, Brantford and Stellarton for the effort, dedication and professionalism they have shown to help build HEXO. “
HEXO has decided to close the following establishments:
- The Kirkland Lake, Ontario facility, part of the 48North acquisition, will close on January 31, 2022.
- The Brantford, Ontario facility, included in the acquisition of 48North, will close on January 31, 2022.
- The Stellarton, Nova Scotia facility, included in the Zenabis acquisition, will close on February 28, 2022.
These facilities are not considered critical to the integrated activities of HEXO.
HEXO is working closely with employees to mitigate the impact of these closures. This effort includes the relocation of employees who are transferring to one of HEXO’s main facilities as well as job search supports for those who cannot relocate. Some 155 employees are affected by this decision.
This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws (“forward-looking statements”). Forward-looking statements are based on certain expectations and assumptions and are subject to known and unknown risks and uncertainties and other factors that could cause actual events, results, performance and achievements to differ materially from those which are anticipated. These forward-looking statements should not be interpreted as guarantees of future performance or results. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements as a result of new information or future events, or for any other reason.
HEXO is an award-winning licensed producer of innovative products for the global cannabis market. HEXO serves the Canadian recreational cannabis market with its portfolio of HEXO Redecan, UP Cannabis, Namaste Original Stash, 48North, Trail Mix, Bake Sale, REUP and Latitude brands, as well as the medical market in Canada, Israel and Malta. The Company also serves the Colorado market through its Powered by HEXO® strategy and Truss CBD USA, a joint venture with Molson Coors. Now that it has acquired Redecan and 48North, HEXO has become a leading cannabis product company in Canada in terms of non-therapeutic market share. For more information, visit the website hexocorp.com.
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