![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Wednesday, June 15, 2022 6:21:59 PM
Cannabis producer Hexo loses CA$146 million in quarter, sees executive exodus
June 15, 2022
Hexo Corp. reported a net loss of 146 million Canadian dollars ($112 million) for its February-April quarter, bringing the Canadian cannabis producer’s loss for the first nine months of its 2022 financial year to CA$953.8 million.
The Quebec-based company’s sales fell 14% sequentially to CA$45.6 million in the third quarter.
By stream, compared to the previous quarter:
Adult-use cannabis net revenue fell 11% to CA$31 million.
Beverage revenue slipped 5% to CA$4 million.
Medical sales declined 15% to CA$813,000.
Wholesale sales fell 13% to CA$3.3 million.
International revenue declined 22% to CA$6.4 million.
Hexo withdrew its financial guidance, citing deteriorating market and economic conditions, recent changes to senior management and a pending transaction with Tilray Brands.
“The company now believes that it will not achieve the synergies and incremental cash flow increases to the level estimated in its previous guidance and it expects such figures and measures to be lower than previously guided,” Hexo noted in a news release.
Hexo previously pledged to become the first among its competitors to be cash-flow positive from operations.
The Quebec-headquartered company said it is reducing its workforce by 450 positions, which are expected to result in cost savings of CA$30.6 million.
Hexo spent CA$7.8 million on termination benefits for key executives so far this year, according to the quarterly filing.
The company provided the following statement after Bonno inquired about the layoffs and departures of some key executives:
“HEXO is committed to streamlining our operations across all functions. This enables our top selling brands to remain competitive in the marketplace whilst aligning to our long-term financial objectives. We look forward to sharing additional details in our Q3 earnings.”
The company has seen an exodus of executives in recent months, including:
Peter Kirkwood, head of sales.
Valerie Malone, chief commercial officer.
Marlon Boyington, director of brand management.
Nancy Neil, medical sales director.
Roch Vaillancourt, general counsel.
Curt Solsvig, acting chief financial officer.
Scott Cooper, CEO.
Meanwhile, Hexo on Tuesday made amendments to its previously announced transaction with Tilray.
The biggest change in the deal is that Hexo debt will now be converted at a price of CA$0.40 per Hexo share, about half the $0.85 per share that was previously agreed to.
The company’s shares were trading at about CA$0.25 on the Toronto Stock Exchange.
Hexo is expected to seek shareholder approval by July 15, a slight delay from June.
The amendments could eventually give Tilray as much as 50% of Hexo, up from an estimated 35%.
“The strategic partnership with Tilray Brands significantly improves HEXO’s capital structure and provides the opportunity to accelerate our growth in global markets,” Hexo president and CEO Charlie Bowman said in a statement.
“Challenging stock market conditions have necessitated amendments to the agreement, but this is a critical step in unlocking the shareholder value held within the Company.”
The company’s shares trade as HEXO on the Nasdaq and TSX.[color=red][/color]
Recent TLRY News
- SweetWater Brewing Launches New Rowdy Peach IPA in Collaboration With Atlanta United FC • GlobeNewswire Inc. • 07/19/2024 11:00:00 AM
- Manitoba Harvest Hemp Foods and Brightseed® Introduce New Coffee and Chocolate Flavors in Organic Bioactive Fiber Supplement for Gut Health • GlobeNewswire Inc. • 07/17/2024 11:00:00 AM
- Tilray Brands, Inc. to Announce Fourth Quarter and Fiscal Year 2024 Financial Results on July 29, 2024 • GlobeNewswire Inc. • 07/15/2024 08:05:00 PM
- Get Ready to Elevate Your Cannabis Experience With Good Supply's Latest Signature Vape Innovations • GlobeNewswire Inc. • 07/10/2024 11:00:00 AM
- Tilray Medical Announces Scientific Study on Medical Cannabis for Patients Over Age 50 • GlobeNewswire Inc. • 07/09/2024 11:00:00 AM
- Tilray Brands Brews Up Summer Fun for the Fourth of July • GlobeNewswire Inc. • 06/27/2024 12:00:00 PM
- Tilray Brands Announces Runner's High Brewing Company – Its New Brand of Premium Non-Alcoholic Brews • GlobeNewswire Inc. • 06/27/2024 11:04:41 AM
- Celebrate Canada Day with Tilray Brands • GlobeNewswire Inc. • 06/26/2024 11:00:00 AM
- Breckenridge Distillery Releases Award-Winning Collectors Art Series Collaboration With Abby Wren • GlobeNewswire Inc. • 06/25/2024 11:00:00 AM
- Tilray Medical Launches Broken Coast Medical Cannabis Brand in Australia • GlobeNewswire Inc. • 06/20/2024 11:00:00 AM
- Tilray Beverages Announces Campaign to Raise Awareness for Men’s Health • GlobeNewswire Inc. • 06/14/2024 11:00:00 AM
- Embrace the Spirit of Summer and Create Shareable Moments with Good Supply Cannabis • GlobeNewswire Inc. • 06/12/2024 11:00:00 AM
- Breckenridge Distillery Wins Double Gold for a Consecutive Year in a Row at the 2024 New York International Spirits Competition • GlobeNewswire Inc. • 06/06/2024 11:30:00 AM
- Redecan Cannabis Introduces New Top Shelf Flower 'Purple Churro' • GlobeNewswire Inc. • 06/06/2024 11:00:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/03/2024 10:36:34 PM
- Twist Your Tastebuds Three Ways: Good Supply Cannabis Brand Launches ‘Twisted’ All-In-One Vapes • GlobeNewswire Inc. • 05/30/2024 11:00:00 AM
- Solei Brand Introduces New Cannabis-Infused ‘Warming Deep Tissue Stick’ • GlobeNewswire Inc. • 05/23/2024 11:00:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/17/2024 12:00:18 PM
- Tilray Brands Announces At-The-Market Program to Fund Strategic and Accretive Acquisitions and Accelerate Expansion Plan Upon U.S. Cannabis Rescheduling When Effective • GlobeNewswire Inc. • 05/17/2024 11:45:49 AM
- Form 424B5 - Prospectus [Rule 424(b)(5)] • Edgar (US Regulatory) • 05/17/2024 11:35:52 AM
- SweetWater Brewing Launches New Sunset Sippin’ Cocktail Inspired Hard Seltzers • GlobeNewswire Inc. • 05/16/2024 11:00:00 AM
- Form 8-K/A - Current report: [Amend] • Edgar (US Regulatory) • 05/14/2024 08:05:58 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/14/2024 11:00:34 AM
- Breckenridge Brewery Announces On Tap with KBCO Concert Series Featuring Cannons, The Moss and Dehd • GlobeNewswire Inc. • 05/14/2024 11:00:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/07/2024 11:00:46 AM
Greenlite Ventures Completes Agreement with No Limit Technology • GRNL • Jul 19, 2024 10:00 AM
VAYK Expects Revenue from First Airbnb Property Starting from August • VAYK • Jul 18, 2024 9:00 AM
North Bay Resources Acquires Mt. Vernon Gold Mine, Sierra County, California, with Assays up to 4.8 oz. Au per Ton • NBRI • Jul 18, 2024 9:00 AM
Nightfood Holdings Signs Letter of Intent for All-Stock Acquisition of CarryOutSupplies.com • NGTF • Jul 17, 2024 1:00 PM
Kona Gold Beverages Reaches Out to Largest Debt Holder for Debt Purchase Negotiation • KGKG • Jul 17, 2024 9:00 AM
Avant Technologies Welcomes Back Former CEO with Eye Toward Future Growth and Expansion • AVAI • Jul 17, 2024 8:00 AM