Brett Vye to
lead cannabis-infused beverage joint venture
TORONTO, Oct. 4, 2018 /CNW/ - Molson Coors Canada
(MCC), the Canadian business unit of Molson Coors Brewing Company
(NYSE: TAP; TSX: TPX), and HEXO Corp. (TSX: HEXO) today announced
that they have closed the transaction announced on August 1, 2018, to form a joint venture to pursue
opportunities to develop non-alcoholic, cannabis-infused beverages
for the Canadian market following legalization.
The joint venture, Truss, will be led by former Molson
Coors executive, Brett Vye, in the
role of Chief Executive Officer. Vye will report to the
Truss board of directors consisting of three members
appointed by MCC and two members appointed by HEXO.
"With the backing of two partners with deep Canadian roots,
proven success, and market-leading experience in the respective
beverage and cannabis industries in Canada, Truss will hit the ground
running," said Brett Vye, Chief
Executive Officer at Truss. "When consumable cannabis is legalized
in Canada, Truss will be
ready to make its mark as a responsible leader in providing
high-quality beverages for the Canadian consumer. Why
"Truss"? We are joining together the extensive
experience and excellent practices of each partner to build a
powerful foundation for the future."
Vye brings a decade of experience in leading successful brand
building and integration efforts, as well as executing long-term
growth strategies. Vye served as the Chief Commercial and Strategy
Officer for the fast-growing International division of Molson Coors
from 2015 to September 2018.
Previously, he served as Chief Commercial Officer of Global License
and as Managing Director of IOP Sales at Molson Coors. Vye has also
worked in a number of commercial roles internationally for Colgate
Palmolive/Hills Pet Nutrition.
Truss is structured as a standalone company with its own
board of directors and independent management team. MCC has a 57.5%
controlling interest with HEXO holding the remaining 42.5%. The
five-member board of directors for the joint venture will initially
comprise Frederic Landtmeters, President and CEO of MCC;
Paul Holden, VP of Legal and
Industry Affairs of MCC; Scott
Cooper, VP, Global Innovation of Molson Coors (Chairman of
the Truss Board); Sebastien
St-Louis, CEO and co-founder of HEXO, and Ed Chaplin, CFO of HEXO.
In connection with the closing of the transaction, HEXO has
issued to MCC 11,500,000 warrants, each of which is exercisable to
purchase one common share of HEXO at an exercise price of
$6.00 for a period of 3 years.
MCC has been advised by Gowling WLG (Canada) LLP, and HEXO has
been advised by Norton Rose Fulbright Canada LLP.
About Molson Coors
Canada
Molson Coors
Canada is the Canadian business unit of Molson Coors Brewing
Company. Headquartered in Toronto,
Ontario, MCC is North
America's oldest brewer and Canada's second largest brewer
by volume, selling approximately one-third of the total Canadian
beer market in 2017. Its portfolio consists of leading brands
in all major product and price segments, including global priority
brands Belgian Moon, Coors Banquet, and Coors
Light, regional champion Molson Canadian, and other key
owned brands, including Creemore Springs, Granville Island, Molson Dry, Molson Export, Old
Style Pilsner, and Rickard's, and strategic distribution
partnerships, including those with Heineken. MCC also
includes partnership arrangements related to the distribution of
beer in Ontario, Brewers' Retail
Inc., and in the Western provinces, Brewers' Distributor Ltd.
About HEXO
HEXO creates and distributes innovative,
easy-to-use and easy-to-understand products to serve the Canadian
cannabis market. One of the country's lowest-cost producers, HEXO
is rapidly increasing its production capacity in the lead up to the
adult-use cannabis market. The Company currently operates with over
300,000 sq. ft. of production capacity with construction on another
1,000,000 sq. ft. expansion set to be complete by year-end. HEXO
will serve the adult-use market under the HEXO brand, while
continuing to serve its medical cannabis clients through the
well-known Hydropothecary brand.
Forward-Looking Statements
This press
release includes "forward-looking statements" within the meaning of
applicable securities laws. Generally, the words "believe,"
"expect," "intend," "anticipate," "project," "will," "outlook," and
similar expressions identify forward-looking statements, which
generally are not historic in nature. Although the companies
believe that the assumptions upon which their respective
forward-looking statements are based are reasonable, they can give
no assurance that these assumptions will prove to be correct.
Important factors that could cause actual results to differ
materially from the companies' projections and expectations are
disclosed in Molson Coors Brewing Company's filings with the
Securities and Exchange Commission, including its most recent
Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q,
and in HEXO Corporation's Annual Information Form and continuous
disclosure filings with the Canadian Securities Administrators,
which are available on SEDAR's website at www.sedar.com. These
factors include, among others, failure to complete or realize
anticipated benefits and synergies from the joint venture;
potential negative consumer, investor or public perception of our
respective current brands or companies; changes in consumer
preferences and product trends; and political, legal and regulatory
uncertainty relating to cannabis products generally. All
forward-looking statements in this press release are expressly
qualified by such cautionary statements and by reference to the
underlying assumptions. Neither Molson Coors Brewing Company nor
HEXO Corporation undertakes to update forward-looking statements
relating to their respective businesses, whether as a result of new
information, future events or otherwise.
SOURCE Molson Coors Canada