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09/06/2018 - 11:45 AM EDT

Hexo CEO ‘very confident’ in expansion plans, says sale ‘matter of time’

Sébastien St. Louis, CEO of Hexo Corp, joins BNN Bloomberg to discuss calls from activist investor Riposte Capital to put the marijuana producer for sale.


HEXO acquires interest in 2M sq. ft. facility in Belleville, Ontario to create R&D and manufacturing centre of excellence 
GlobeNewswireSeptember 10, 2018, 10:54 AM MDT 
GATINEAU, Quebec, Sept. 10, 2018 (GLOBE NEWSWIRE) -- HEXO Corp. (“HEXO” or the “Company”) (HEXO.TO) has announced the acquisition of an interest in a 2,004,000 sq. ft. facility in Belleville, Ontario. This is the first facility of the Company to be established outside of Quebec, further delivering on its national expansion strategy and providing capacity for the manufacturing of advanced cannabis products, including cosmetics, vapes, non-alcoholic beverages and other edibles. 

The centralized location, conveniently located along primary shipping routes in Ontario, presents the opportunity to process and distribute products and to fulfil commitments across Canada. The space also supports the Company’s hub and spoke model. Its scalability, flexibility and location are ideal to deliver on anticipated future joint ventures with Fortune 500 companies for cosmetics, edibles, vapes, and more, positioning it to become a centre of excellence for all of HEXO’s joint ventures. HEXO’s expansion will also lead to the creation of jobs and a rejuvenated employment sector for the area. 

The building, previously used as a Sears distribution centre, will be owned in a joint venture with Olegna Holdings Inc. Initially, HEXO plans to lease up to 500,000 sq. ft. of the space from the joint venture. The proposed use of the building is conditional on the city approving the rezoning application. 

“There is a skilled workforce in the Belleville area, and we look forward to capturing it,” said Sebastien St-Louis, HEXO’s co-founder and CEO. “We are investing in the region and its people with a view to achieving a sustainable national presence. For the first time, we are stepping out of our home province of Quebec and are committed to and demonstrating our commitment to serve and expand across Canada. And we are keeping future partnership and international opportunities in sight for the near future.” 

The building is owned by Belleville Complex Inc., a joint venture in which HEXO will hold a 25% interest and Olegna Holdings Inc. will hold a 75% interest. In addition to its initial lease of 500,000 sq. ft. of the space under a long-term lease, HEXO will have rights of first offer and first refusal to lease the remaining space in the building. As part of the transaction, HEXO has loaned $20,000,000 to Belleville Complex to acquire the building. The loan will be repaid within 120 days from September 7, 2018, and as of October 7, 2018, will bear interest at an annual rate of 4%, which interest shall be payable monthly. The loan is secured by a first mortgage over the building. The transaction is subject to the satisfaction of certain conditions and is scheduled to close on October 12, 2018. 

The transaction is considered a “related party transaction” within the meaning of Multilateral Instrument 61 - 101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”) because Mr. Vincent Chiara, a director of HEXO, holds a majority interest in Olegna Holdings Inc. HEXO is relying on applicable exemptions from the minority approval and valuation requirements of MI 61-101 on the basis that neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the transaction exceeds 25% of HEXO’s market capitalization. The terms of the transaction have been reviewed and approved by the independent directors of the Company, and the rental rates for the facility were supported by estimates from independent appraisers. 






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#562   HEXO CFO resigns seanster 10/04/19 05:17:55 PM
#561   10/24/19 xray168 10/02/19 10:36:44 PM
#560   Hexo is headed for delisting seanster 10/02/19 01:47:25 PM
#559   Great day to buy! Smokemonster 10/02/19 10:00:45 AM
#558   Yes it is. Q3 6/12/19. Q4 should be seanster 10/02/19 09:22:58 AM
#557   No it's not xray168 10/01/19 11:59:07 PM
#556   earnings report is 2 weeks past due. what's seanster 10/01/19 03:50:41 PM
#555   Charts looking they might be ready to take off. Smokemonster 09/27/19 08:14:45 AM
#554   SAFE Banking Act (H.R. 1595) gets voted on tomorrow. nowwhat2 09/24/19 10:32:21 PM
#553   YES SIR!!! Pstats 09/23/19 11:27:47 AM
#552   Did you disappear or still trying to cover? Smokemonster 09/23/19 10:01:13 AM
#551   What’s your guess for next week, just so Smokemonster 09/22/19 11:21:58 AM
#550   Huh? You just making stuff up now? Smokemonster 09/16/19 01:48:52 PM
#549   Selling on news ! Haha! Typical pink sheet tactics Pstats 09/16/19 11:45:14 AM
#548   Earnings 9am Lipkin9393 09/12/19 07:53:24 AM
#547   Nice healthy bounce! Smokemonster 09/05/19 02:56:19 PM
#546   Haha that made me laugh. This will Smokemonster 08/15/19 08:52:37 AM
#545   A few other things going on as well Smoke 12yearplan 08/15/19 07:51:46 AM
#544   Love how great news leads to a sell off! Smokemonster 08/14/19 05:37:20 PM
#543   HEXO Corp bolsters Ontario foothold with addition of Smokemonster 08/14/19 07:15:48 AM
#542   Beautiful day! Smokemonster 08/09/19 04:21:24 PM
#541   we'll see... looks nice! 12yearplan 08/09/19 03:59:44 PM
#540   Yw, gap from this morning fill.. we'll see. 12yearplan 08/09/19 11:40:39 AM
#539   Great news thanks for sharing Smokemonster 08/09/19 11:35:10 AM
#538   http://thecannabisstock.com/2019/08/09/hexos-greece-license-officially-released- 12yearplan 08/09/19 11:28:18 AM
#537   eh eh eh ;) 12yearplan 07/29/19 03:45:33 PM
#536   HEXO’s dried flower and award-winning Elixir spray now Smokemonster 07/22/19 07:07:52 AM
#535   Gettin' closer to the turn 12yearplan 07/21/19 09:45:16 PM
#534   Moving on up! HEXO Corp to transfer listing to Smokemonster 07/11/19 07:47:14 AM
#533   Forgot about July 4th. I’m happy to Smokemonster 07/03/19 03:58:24 PM
#532   US HEXO market closed early today due to junkHustler 07/03/19 03:49:31 PM
#531   Strange to see the US HEXO and CAN Smokemonster 07/03/19 03:44:01 PM
#530   You’re in Canada? You should know that answer ddbl_our_buck 07/02/19 07:24:03 AM
#529   Bought a few shares today. Nice volume! Smokemonster 06/21/19 10:22:55 AM
#528   I started buying this up again late last Smokemonster 06/18/19 10:56:28 PM
#527   New to Hexo and this board. Unbeknownst to Estate1 06/18/19 01:01:29 PM
#526   HEXO Corp to announce third quarter fiscal 2019 Smokemonster 06/10/19 06:08:08 PM
#525   Relevant and interesting MJ news: https://www.marijuanamoment.net/federal la_trader 06/02/19 01:09:29 PM
#524   Nice recovery today! Smokemonster 05/31/19 11:56:19 AM
#522   HIP Approves HEXO Merger + Buy/Sell Signal, Chart RTupp23 05/17/19 05:16:57 PM
#521   Yah Mon!, veritable atm ;) 12yearplan 05/16/19 10:12:39 AM
#520   Lookin good Mr. 12 ;-) la_trader 05/16/19 03:26:29 AM
#519   Big move today, congrats to 12yearplan 05/15/19 03:36:41 PM
#518   Looks like twas door number 3. 12yearplan 05/14/19 09:55:24 AM
#517   April’s Top Performing Cannabis Stocks RTupp23 05/12/19 02:27:16 PM
#516   Now here’s something you don’t see every day. 12yearplan 05/10/19 09:52:24 AM
#515   Retrace $9.80, 9.50, 8.85 ? tia. 12yearplan 05/09/19 03:56:03 PM
#514   Competition Bureau approves HEXO Corp/Newstrike Brands Ltd. Deal GATINEAU, Smokemonster 05/09/19 07:21:15 AM
#513   Another Wall Street Analyst Gives These Marijuana Stocks RTupp23 04/29/19 07:29:00 PM
#512   The best Canadian cannabis stock that I own. Waymor2go 04/29/19 11:16:13 AM