HEXO - HEXO STOCK NEWS

HEXO Corp. reported strong financial results for 2Q21, achieving a 94% annual revenue increase to $32.8M and a positive adjusted EBITDA of $202. The company's adult-use revenue rose 10.5% sequentially, marking the fifth consecutive growth quarter. HEXO maintained its number one market position in Quebec, while expanding its presence across Canada. The successful relaunch of the UP Cannabis brand contributed $3.2M in sales. Upcoming acquisition of Zenabis is expected to enhance growth prospects, solidifying HEXO’s position among top Canadian cannabis producers.

HEXO Corp plans to release its fiscal second quarter 2021 financial results on March 18, 2021, before market hours. The Company will also host a webcast for investors at 8:30 a.m. EST to discuss these results. HEXO Corp, a recognized leader in the cannabis consumer packaged goods sector, operates under brands like HEXO Cannabis and Up Cannabis in the Canadian market.

HEXO Corp. and Zenabis Global Inc. have announced a definitive arrangement agreement for HEXO to acquire all of Zenabis’ common shares in an all-share transaction valued at approximately $235 million. Zenabis shareholders will receive 0.01772 HEXO shares per Zenabis share, representing a 19% premium based on the recent average share price. The acquisition aims to position HEXO as a top three licensed producer in Canada, enhance its European market access, and achieve annual synergies of about $20 million. The transaction requires shareholder approval and regulatory clearances.

HEXO Corp has appointed Charles Bowman as General Manager of its US operations effective immediately. His extensive background in commercial growth, particularly in the natural biotechnology sector, is expected to enhance HEXO's presence in the US market. The CEO, Sebastien St-Louis, emphasized the importance of this leadership role as the company looks to expand production facilities in Colorado and strengthen its relationship with Truss CBD USA, a joint venture with Molson Coors. Bowman's experience spans nearly three decades in senior roles at leading ingredient suppliers.

The cannabis industry is projected to reach $40.6 billion in global licensed dispensary sales by 2024, with the US contributing approximately $30 billion. Recreational cannabis sales are expected to hit $26.7 billion and medical cannabis $13.9 billion. A focus on cannabis delivery services is emerging as a key growth area. NxGen Brands has acquired an exclusive license for tracking technologies to enhance its cannabis delivery app. Additionally, Sundial Growers launched new premium cannabis derivatives, while HEXO Corp's joint venture Truss CBD USA introduced a sparkling CBD beverage line in Colorado.

HEXO Corp has announced the successful registration of its trademark, Powered by HEXO, with the European Union Intellectual Property Office after a two-year process. This milestone supports HEXO's strategy and enhances its brand's global value. CEO Sebastien St-Louis highlighted that this trademark will support current joint-venture partners and attract potential non-beverage CPG partners. The initiative integrates research, regulatory expertise, and consumer understanding, contributing to the quality of award-winning products.

HEXO Corp has appointed Rose Marie Gage to its Board of Directors, increasing the board to seven members. Gage brings over 30 years of experience from multinational firms like Westinghouse and GE, focusing on business development, strategy, and governance. Dr. Michael Munzar, Chair of the Board, highlighted her operational effectiveness as crucial for HEXO's goals to achieve EPS positivity, expand market share in Canada, and grow U.S. operations. Gage holds significant qualifications, including a Chartered Director designation and certifications in Lean Six Sigma and Cyber-Security.

HEXO Corp and Molson Coors Beverage Company announced the U.S. launch of Veryvell^TM, a non-alcoholic sparkling CBD beverage line available exclusively in Colorado. The product is offered in three flavors: Focus, Mind & Body, and Unwind. This launch follows the success of Truss Beverage Brands in Canada, with plans for further investment in U.S. operations to expand their market presence. Veryvell^TM adheres to Colorado's regulatory standards for hemp-derived CBD. This collaboration aims to establish Truss CBD USA as a key player in the growing CBD beverage market.

HEXO Corp (TSX: HEXO; NYSE: HEXO) announced that its CEO, Sebastien St-Louis, will join a panel on January 14, 2021, at 8:00 am EST. The discussion will focus on growth opportunities for Canadian licensed producers in the United States and is moderated by David Kideckel of ATB Capital Markets. Media representatives can access the broadcast by contacting Brenda Hanchar at AltaCorp Capital. HEXO is recognized for its cannabis consumer products and operates under various brands in both the adult-use and medical markets.