HEXO Corp (HEXO)

[JohnCM]

HEXO Corp. goes global, establishes Greek manufacturing facilities for
distribution throughout Europe, including France and the UK

GATINEAU, Quebec, Sept. 26, 2018

HEXO Corp. (“HEXO” or the “Company”) (TSX:HEXO) plans to establish a Eurozone
processing, production and distribution centre in Greece. The partnership with Greek company Qannabos (“QNBS”) will
catalyze a vertically integrated cannabis enterprise to capitalize on the current medical markets. HEXO’s plan to establish
operations in Greece marks the Company’s first foray into the European cannabis market.

The move will provide the company
presence in Europe to supply a full suite of brands in France, the United Kingdom, and other European markets once
regulations permit.

“I’m excited to add European distribution capabilities for HEXO and its joint venture partners,” said Sebastien St-Louis, HEXO
Corp.’s CEO and co-founder. “By bringing brands powered by HEXO, our infrastructure and our know-how to Europe, we will be
well prepared to serve a burgeoning market. This new capability will allow us to bring even more value to our hub and spoke
partners in the beverage, cosmetics, and food space by giving them access to licensed cannabis infrastructure and brands in
Europe.

Additionally, HEXO believes that we will quickly be able to leverage our joint venture partners’ networks to take
significant first mover advantage and market share.”
The agreement between HEXO and QNBS plans for the development of 350,000 sq. ft. of licensed infrastructure that will be
used for manufacturing, processing and distribution of medical cannabis products, powered by HEXO, destined for the
European market.

“We are thrilled to be partnering with HEXO to bring legal medical cannabis expertise to Greece,” said QNBS’ co-founder,
Leonidas Garyfallos. “Our goal is to create high-quality products and to build relationships with clients that are based on trust;
trust in our quality, trust in our approach to business, and trust in our ability to deliver on our commitments. These are values
that HEXO prioritizes and we look forward to working with them to serve the European market for years to come.”

HEXO’s plan to establish operations in Greece is the Company’s first step to seeking significant first mover advantage and
market share in the adult-use cannabis market in Europe, which is estimated to reach approximately $110 billion annually by
2028. Greece legalized cannabis for medical use in March 2018 but has yet to license any cannabis producers in the country.

Closing of the transaction is subject to the satisfaction of certain conditions including satisfactory due diligence, negotiation of
definitive agreements and receipt of any required regulatory approvals.