HEXO Corp. buys production facility in Colorado

It’s part of the company’s strategy to leverage its intellectual property across the United States.

HEXO, Colorado

HEXO Corp. hopes to gain a larger foothold in the U.S. consumer-packaged goods sector. Photo by HEXO Corp.

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An Ottawa-based cannabis company has closed a previously announced deal for a 50,000-square-foot production facility. HEXO Corp. bought the project in Fort Collins, Colorado, through its U.S. subsidiary.

HEXO’s president and CEO, Sebastien St-Louis, noted that the company hopes to supply its “Powered by HEXO” technology and leverage its intellectual property across America.

“The facility will also provide us with the necessary infrastructure to continue expanding our joint venture with Molson Coors to create Truss CBD-infused beverages, while also creating the necessary capacity to support future, non-beverage CPG partnerships,” St-Louis said in a news release.

HEXO’s Colorado facility is zoned to produce a “full range of cannabis products”. According to the company, it will be retrofitted “to support Powered by HEXO initiatives across the country”.

HEXO emphasized that this will be done “in compliance with all applicable laws and regulations”.

Back in 2012, Colorado became the first state to legalize recreational weed. Then Colorado governor John Hickenlooper achieved this through an executive action that amended the state’s constitution. This came after 55.3 percent of voters approved Amendment 64 to change the statewide cannabis policy.

Hickenlooper, a former mayor of Denver, won election to the U.S. Senate in 2020.

Roller-coaster ride for HEXO shareholders

Meanwhile, HEXO’S shares opened today at $7.20 on the Toronto Stock Exchange. It’s worth $925 million.

HEXO stock has been quite volatile in the past year, ranging from a low of $3.04 to a high of $14,00, which occurred in February.

At the start of this month, HEXO announced that it had acquired all the shares of Vancouver-based Zenabis Global Inc. According to St-Louis, this gave HEXO a foothold in Europe and a springboard for future expansion there and in Canada.

HEXO conducted the Zenabis takeover through a share swap. The Ottawa-based company exchanged each Zenabis share for 0.01772 of its commmon share.

Charlie Smith

I'm the editor of the Georgia Straight newspaper in Vancouver, as well as a CannCentral contributor.

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