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The Hydropothecary Corporation (TSX:HEXO)

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Last Post: 12/13/2018 9:01:58 PM - Followers: 28 - Board type: Free - Posts Today: 0


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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HEXO News: Lancement de la coentreprise Truss par Molson Coors Canada et HEXO 10/04/2018 05:00:00 PM
HEXO News: Molson Coors Canada and HEXO Launch Truss 10/04/2018 05:00:00 PM
HEXO News: Global Cannabis Partnership Welcomes New Members 09/13/2018 03:44:00 PM
HEXO News: Global Cannabis Partnership Welcomes New Members 09/13/2018 03:44:00 PM
HEXO News: Riposte Capital Calls on Leading Cannabis Licensed Producer, HEXO Corp., to Initiate a Review of Strategic Alternatives 09/06/2018 08:00:00 AM
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#288  Sticky Note Molson Coors Canada and HEXO Launch Truss junkHustler 10/04/18 06:06:14 PM
#204  Sticky Note From another board..good summary of last quarter. (from postal72 09/10/18 05:54:02 PM
#351   Yeah, not that many strands dude ;) 12yearplan 12/13/18 09:01:57 PM
#350   Yep. Do the math. junkHustler 12/13/18 05:50:57 PM
#349   Does anyone see that they made $5.2 million The Small Lebowski 12/13/18 05:10:09 PM
#348   HEXO Corp reports $6.7 million in gross revenue postal72 12/13/18 08:38:32 AM
#347   Retail Cannabis Sales Fuel 506% Revenue Growth for Expresso123 12/13/18 08:16:41 AM
#346   https://www.thegrowthop.com/wp-content/uploads/2018/11/1a_Hydropothecary2-e15435 12yearplan 12/03/18 12:16:39 PM
#345   HEXO scoops two prizes at 2018 Canadian Cannabis Awards junkHustler 12/03/18 12:06:22 PM
#344   Looking for that higher high. No, Not talking Quiet Storm 12/02/18 10:41:47 PM
#341   Might be time to sell, company not really Smokemonster 11/27/18 08:53:11 AM
#340   Find it amazing that almost all the Pot Smokemonster 11/22/18 08:54:49 AM
#339   Hexo take a Flintstones vitamin and get back Ridgeback2017 11/13/18 11:29:10 AM
#338   Up listing to happen by end of year Smokemonster 11/13/18 09:39:55 AM
#337   Short positions in Cannabis sector are crazy. Smokemonster 11/12/18 03:09:23 PM
#336   Hopefully we stabilize at $6.00, then continue north Smokemonster 11/12/18 09:40:15 AM
#335   Not just Hexo , but a lot of Ridgeback2017 11/05/18 03:32:58 PM
#334   What news do I not know that’s making Smokemonster 11/05/18 03:14:41 PM
#333   http://dailyhive.com/toronto/molson-and-hexo-officially-developing-cannabis-infu Bucky4 10/31/18 08:10:18 PM
#332   No shit , this is painfull . Ridgeback2017 10/29/18 03:04:37 PM
#331   Interesting, would love to see the market stop bleeding!!! Smokemonster 10/29/18 02:42:44 PM
#330   'Mispriced' pot stock Hexo looks to NYSE to junkHustler 10/29/18 01:58:44 PM
#329   Going to affect us , but not sure Ridgeback2017 10/27/18 07:24:18 PM
#328   Does anyone have the on-line link to the TESLIN 10/26/18 10:12:03 PM
#327   I think I can , I think I can Ridgeback2017 10/24/18 10:51:31 AM
#326   HEXO rises up to the challenge of higher junkHustler 10/23/18 03:33:40 PM
#325   Well that was fun , lets not do Ridgeback2017 10/23/18 02:04:57 PM
#324   I agree. And Andrew will not be the junkHustler 10/19/18 03:29:14 PM
#323   Saw that dumbass comment he made , what Ridgeback2017 10/19/18 02:48:05 PM
#322   Cannabis supplies have been selling out here in Smokemonster 10/19/18 02:32:46 PM
#321   Just churn, profit taking and some fear that junkHustler 10/19/18 02:12:30 PM
#320   Why all the big players down today? Smokemonster 10/19/18 02:11:08 PM
#319   Reloaded at 7.75 , happy as hell ! Ridgeback2017 10/18/18 11:30:11 AM
#318   First day of officially legal to general public! Smokemonster 10/17/18 08:25:39 AM
#316   Nice view of what a store in Quebec Smokemonster 10/16/18 01:42:26 PM
#315   No soup for me ! Ridgeback2017 10/15/18 02:30:09 PM
#314   You forgot strong! junkHustler 10/15/18 02:06:32 PM
#313   Slow and steady , baby ! Ridgeback2017 10/15/18 12:49:58 PM
#312   I think I missed a dip to reload Ridgeback2017 10/14/18 12:00:26 PM
#311   A merger with Aurora would be good for Powe 10/14/18 11:48:36 AM
#310   gimmee Details ! Ridgeback2017 10/13/18 09:48:16 PM
#309   Merger with aurora! FunkyT 10/13/18 09:08:38 PM
#308   I could see a merger happening. With the Powe 10/10/18 11:06:29 AM
#306   BM? Not heard of that one before.. Big Merger? junkHustler 10/10/18 10:07:53 AM
#305   Don't know about a BO , but a Ridgeback2017 10/10/18 09:54:04 AM
#304   Could a BO be in the offing? Powe 10/09/18 07:35:29 PM
#303   I am in the same fog you are Ridgeback2017 10/06/18 09:26:09 AM
#302   So I guess the Coors news was already Smokemonster 10/06/18 06:49:27 AM
#301   Aurora uplisting to NYSE after 3 weeks of excboe 10/05/18 05:29:58 PM
#300   agree.. added more shares this morning. 33Sailor 10/05/18 04:30:39 PM
#299   Great video! Powe 10/05/18 02:37:21 PM
#298   https://www.bnnbloomberg.ca/market-call/bruce-campbell-discusses-hexo~1506470 33Sailor 10/05/18 09:17:14 AM