HEXO launches cannabis value brand, Original Stash, with 1 oz product at $4.49 a gram including taxes
October 16 2019 - 5:30AM
According to Statistics Canada’s latest National Cannabis Survey
(published on August 15, 2019), almost half—over 40%—of
Canadians continue to purchase cannabis from illegal sources,
with price being one of the major factors that
drive them to the black market. But do they realize
that the cannabis they are purchasing is illegal, unregulated,
and not tested? That’s what HEXO Corp (“HEXO” or the
“Company”) (TSX:HEXO; NYSE:HEXO) set out to quantify.
“It is becoming increasingly difficult for the
average consumer to distinguish products that are legal, versus
those that are not. Illicit cannabis distributors have gone as far
as include the mandated Health Canada warnings and THC
disclaimers,” said Sebastien St-Louis, HEXO Corp’s CEO and
co-founder. “Illegal cannabis websites are well built, allow
consumers to purchase online, and products are delivered to their
doors. But we know that illegal cannabis products
can—and often—contain heavy metals, pesticides, and other
contaminants, and that concerns me deeply.”
HEXO is committed to playing an
important role in eliminating the black market and in
protecting public health and safety, and to this end is pleased to
announce the launch of Original Stash, its new value
brand. Adult-use consumers will now be able to purchase 28
grams (1 oz) at black market prices, at a
retail price in Quebec of $125.70 including sales taxes,
equivalent to $4.49 a gram all in.
Original Stash’s first product, OS.210, is
offered as a hybrid sativa dried flower blend at 12%-18% THC.
Original Stash comes in odour-proof
and resealable packaging and will be available in SQDC
retail stores on October 17, 2019. The product will roll out in the
rest of Canada soon after.
“Our aim with Original Stash is to
disrupt the illicit market, educate consumers about the value of a
regulated and tested product, and drive them to purchase their
cannabis legally,” added St-Louis. “We’re now competing
directly with the illicit market and providing consumers
with an affordable, controlled, quality product. Moreover, we
are giving consumers the option of less
packaging in a 1 oz format, which we
know is a priority for so many.”
A national survey conducted by Abacus Data found
that one third of Canadians who purchase
cannabis edibles and topicals are not aware that the
products they are purchasing are distributed unlawfully. A
follow-up survey conducted by Abacus Data found that one in five
Canadians who purchased dried flower or capsules from an
illegal online retailer was not aware that it was
illegal for them to do so.
Moreover, the initial survey found
that:
- 15% of Canadians say they have purchased dried flower since
legalization and 4% purchased capsules.
- 55% purchased in a physical retail store, 28% in a legal online
store.
- But 1 in 5 say they purchased on "another online store or
website" and 31% purchased from "another source" - i.e. a
black market source
About the Surveys
The survey, Awareness of the Law Related to Purchasing
Cannabis, was conducted online with 2,347 Canadian adults,
from Oct 8th to 10th, 2019. A random sample of panelists were
invited to complete the survey from a set of partner panels based
on the Lucid exchange platform. These partners are typically double
opt-in survey panels, blended to manage out potential skews in the
data from a single source. The margin of error for a comparable
probability-based random sample of the same size is +/- 2.02%, 19
times out of 20. The data were weighted according to census data to
ensure that the sample matched Canada’s population according to
age, gender, educational attainment, and region. Totals may not add
up to 100 due to rounding.
The survey, Use of Edibles and Topicals and Awareness of the Law
Related to Them, was conducted online with 3,049 Canadian
adults, from Aug 23rd to 28th, 2019. A random sample of panelists
were invited to complete the survey from a set of partner panels
based on the Lucid exchange platform. These partners are typically
double opt-in survey panels, blended to manage out potential skews
in the data from a single source. The margin of error for a
comparable probability-based random sample of the same size is +/-
1.8%, 19 times out of 20. The data were weighted according to
census data to ensure that the sample matched Canada’s population
according to age, gender, educational attainment, and region.
Totals may not add up to 100 due to rounding.
About HEXO Corp HEXO Corp is an
award-winning consumer packaged goods cannabis company that creates
and distributes innovative products to serve the global
cannabis market. Through its hub and spoke business strategy, HEXO
Corp is partnering with Fortune 500 companies, bringing its brand
value, cannabinoid isolation technology, licensed infrastructure
and regulatory expertise to established companies, leveraging their
distribution networks and capacity. As one of the largest licensed
cannabis companies in Canada, HEXO Corp operates
with 2.4 million sq. ft of facilities in Ontario and
Quebec. The Company is also expanding
internationally and has a foothold in Greece to establish a
Eurozone processing, production and distribution centre. The
Company serves the Canadian adult-use markets under its HEXO
Cannabis and Up Cannabis brands, and the medical
market under HEXO medical cannabis. For more information
please visit hexocorp.com.
Forward-Looking Statements This press
release contains forward-looking information and forward-looking
statements within the meaning of applicable securities laws
(“forward-looking statements”). Forward-looking statements are
based on certain expectations and assumptions and are subject to
known and unknown risks and uncertainties and other factors that
could cause actual events, results, performance and achievements to
differ materially from those anticipated in these forward-looking
statements. Forward-looking statements should
not be read as guarantees of future performance or results. A more
complete discussion of the risks and uncertainties facing the
Company appears in the Company’s Annual Information Form and other
continuous disclosure filings, which are available on SEDAR
at www.sedar.com and
EDGAR
at www.sec.gov. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
The Company disclaims any intention or obligation, except to the
extent required by law, to update or revise any forward-looking
statements as a result of new information or future
events, or for any other reason.
Investor Relations: Jennifer
Smith 1-866-438-8429 invest@HEXO.comwww.hexocorp.com
Media Relations: Caroline
Milliard (819)
317-0526 media@hexo.com
Two photos accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/19400150-45a1-4ef0-b456-3a1ae144e562
https://www.globenewswire.com/NewsRoom/AttachmentNg/d14c5025-3f54-481b-9a0d-3aac10176780
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