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The Hydropothecary Corporation (TSX:HEXO)

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Last Post: 9/21/2018 2:19:14 AM - Followers: 19 - 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: 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
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
HEXO News: Molson Coors Canada and HEXO Announce Agreement to Create Joint Venture Focused on Non-Alcoholic, Cannabis-Infused Beverages ... 08/01/2018 05:00:00 AM
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#204  Sticky Note From another board..good summary of last quarter. (from postal72 09/10/18 05:54:02 PM
#120  Sticky Note Molson Coors Canada and HEXO Announce Agreement to junkHustler 08/01/18 09:47:09 AM
#259   CEO always plays it COOOOL... Att_for_life 09/21/18 02:19:14 AM
#258   HEXO ON CNBC...LINK: Att_for_life 09/21/18 02:17:09 AM
#257   Sounds very " cone of silence " . Ridgeback2017 09/20/18 02:05:59 PM
#256   I think its within week or two and FunkyT 09/20/18 09:39:57 AM
#255   Any idea when investors will be told? Smokemonster 09/20/18 09:25:57 AM
#254   It's a done deal! All I can say FunkyT 09/20/18 08:05:23 AM
#253   Care to elaborate ? Curious minds want to Ridgeback2017 09/20/18 07:43:50 AM
#252   CEO already submitted for uplist: Att_for_life 09/20/18 03:46:42 AM
#251   Lol, Tilray's market cap is bigger than the 12yearplan 09/19/18 08:50:15 PM
#250   BIG NEWS COMING SOON. NO JOKE!!!! FunkyT 09/19/18 07:06:32 PM
#249   It's not a crazy drop. Look at the singhinvestor16 09/19/18 04:22:31 PM
#248   Anyone know why the crazy drop today? Smokemonster 09/19/18 03:36:46 PM
#247   I like the style of HEXO , walking Ridgeback2017 09/19/18 12:21:27 PM
#246   Almost 2 Million shares in the first half hour!!! Smokemonster 09/19/18 09:57:33 AM
#245   Great point. Tilray is trading with a Smokemonster 09/19/18 09:27:10 AM
#244   When NASDAQ or NYSE listing? Canadian exchanges are excboe 09/19/18 08:16:03 AM
#243   New high coming. This one is a news machine. junkHustler 09/19/18 07:41:40 AM
#242 KravMD 09/19/18 06:45:05 AM
#241 postal72 09/18/18 08:04:11 AM
#240   Hexo just received a little exposure by a jisaiah 09/18/18 01:05:45 AM
#239   Love these +5% days. License to print money! Smokemonster 09/17/18 04:13:45 PM
#238   This page is the single reason I sold everything... Att_for_life 09/17/18 03:11:48 AM
#237   #2 right after Canopy...yeah baby!! Att_for_life 09/17/18 03:09:31 AM
#236   New article on HEXO. excboe 09/16/18 09:52:33 AM
#235   Page 19 of Corporate presentation says it all. excboe 09/15/18 09:36:37 PM
#234 postal72 09/15/18 09:35:09 AM
#233   RSI reset now: below 50 :) Att_for_life 09/15/18 04:30:45 AM
#232   Since the company changed names, somehow the stock jisaiah 09/14/18 06:12:28 PM
#231   Lol, yur not alone ;) 12yearplan 09/13/18 09:18:46 PM
#230   This setback is ACTUALLY needed. I didnt want jisaiah 09/13/18 07:00:41 PM
#229   Agreed. A little reset of indicators is needed postal72 09/13/18 05:23:01 PM
#228   Normal churn for a stock thats almost doubled junkHustler 09/13/18 05:03:45 PM
#227   Lol me too, took some at 7.65. Dropped postal72 09/13/18 04:49:40 PM
#226   Thought I was smart buying at 7.75 today Ridgeback2017 09/13/18 04:37:33 PM
#225   Global Cannabis Partnership Welcomes New Members Canada NewsWire SAINT JOHN, postal72 09/13/18 04:00:58 PM
#224   Its the OTC symbol for HEXO. Traded on junkHustler 09/12/18 06:35:42 PM
#223   Some one help me out here, jisaiah 09/12/18 06:32:35 PM
#222   Undervalued. Based on MKT caps of the Smokemonster 09/12/18 04:51:33 PM
#221   Aurora is dillution city... Att_for_life 09/12/18 04:39:52 PM
#220   Its adequately valued by the market. junkHustler 09/12/18 04:25:16 PM
#219   Is this stock undervalued or overvalued. Opinions please canadiancannaexpert 09/12/18 04:15:47 PM
#218   Just some normal churn as profit taking will junkHustler 09/12/18 12:50:58 PM
#217   Curious about the lack of mention of Aurora . Ridgeback2017 09/12/18 11:57:26 AM
#216   Would be great if we still ended in Smokemonster 09/12/18 11:40:06 AM
#215   New 52 week high. GLTA & JMO junkHustler 09/12/18 09:47:12 AM
#214   Last minute it dropped, oh well we keep Smokemonster 09/12/18 09:32:49 AM
#213   Looks like we will open at $9 today GLTA junkHustler 09/12/18 09:21:50 AM
#212   I’m in this one W/ 70% ACBFF 25% ITHUF 5 % Nextinline 09/12/18 06:37:25 AM
#211 postal72 09/11/18 06:14:52 PM
#210 postal72 09/11/18 04:24:49 PM