HEXO CORP. FILES AMENDED ANNUAL MD&A FOR FISCAL 2019 AND INTERIM MD&A FOR Q1 2020
March 19 2020 - 7:55PM
HEXO Corp. (“HEXO” or the “Company”) (TSX: HEXO; NYSE: HEXO) today
announced it has amended and refiled its management’s
discussion and analysis for the fiscal year ended July 31, 2019
(the “Amended 2019 MD&A”) and its management’s discussion and
analysis for the three month period ended October 31, 2019 (the
“Amended Q1 2020 MD&A”) to better comply with National
Instrument 51-102 - Continuous Disclosure Obligations.
As noted in the press release of the Company
dated March 17, 2020, the Amended 2019 MD&A and Amended Q1 2020
MD&A (collectively, the “Amended MD&A”) were prepared
following a continuous disclosure review by the Ontario Securities
Commission (“OSC”) of the Company’s disclosure record. The Amended
MD&A were filed to address comments received from OSC Staff and
in order to improve the Company’s disclosure. In particular, among
other changes, the Amended MD&A have been revised:
- to clarify and provide additional disclosure about the
Company’s facilities including its plans for the facilities, the
status of facilities including construction and licensing, and
incurred and expected additional capital expenditures in respect of
the facilities;
- to clarify and provide additional disclosure regarding the
Company’s impairments and write-offs of inventory, including
related events, risks, and uncertainties that the Company
reasonably believes may materially affect its future
performance;
- to clarify and provide additional disclosure regarding the
Company’s supply contract with Quebec’s Société québécoise du
cannabis (the “SQDC”) including details of the Company’s right
under the contract for the sale of 20,000kg to the SQDC during the
first year of the contract;
- to provide additional disclosure about how the Company has used
proceeds from certain financings;
- to clarify and provide additional disclosure regarding the
Company’s use of non-IFRS financial measures; and
- to clarify that the suspension of operations at the Company’s
Niagara, Ontario facility in October 2019 was completed, as
previously disclosed by the Company, as part of its cost-cutting
measures to rightsize its operations given current market
conditions and over-capacity in the market and with a view to
profitability and sustainability.
The amended information relates only to the
management’s discussion and analysis for the relevant periods, and
no changes were made to the financial statements for the
corresponding periods.
The Amended MD&A are available under the
Company’s profile on SEDAR at www.sedar.com.As also noted in the
press release of the Company dated March 17, 2020, the Company is
delayed in filing its interim financial statements and related
management’s discussion and analysis and certifications for the
three and six month periods ended January 31, 2020 (the “Q2 2020
Filings”), and is working to file the Q2 2020 Filings as soon as
possible.
About HEXO
HEXO Corp. is an award-winning consumer packaged
goods cannabis company that creates and distributes innovative
products to serve the Canadian cannabis market. The Company serves
the Canadian adult-use markets under its HEXO Cannabis, Up
Cannabis and Original Stash 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
Canadian and United States securities laws. Such statements are
based upon the Company’s current internal expectations, estimates,
projections, assumptions and beliefs and views of future events.
Forward-looking information and forward-looking statements can be
identified by the use of forward-looking terminology such as
"believes", "expect", "likely", "may", "will", "should", "intend",
"anticipate", "potential", "proposed", "estimate" and other similar
words, including negative and grammatical variations thereof, or
statements that certain events or conditions "may", "would" or
"will" happen. The forward-looking information and statements in
this news release include statements relating to the anticipated
timing for filing of the Q2 2020 Filings. Forward-looking
information and statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable, are
subject to known and unknown risks, uncertainties, and other
factors which may cause the actual results and future events to
differ materially from those expressed or implied by such
forward-looking information and statements. Such factors include,
but are not limited to: management's perceptions of the anticipated
timeline in which the Q2 2020 Filings can be completed and filed,
results of operations, operational matters, historical trends,
current conditions and expected future developments, as well as
other considerations that are believed to be appropriate in the
circumstances. There can be no assurance that such information and
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information and statements. Accordingly, readers should not place
undue reliance on forward-looking information and statements. The
Company disclaims any intention or obligation to update or revise
any forward-looking information and statements, whether as a result
of new information, future events or otherwise, except as required
by law.
Investor Relations:Jennifer
Smith1-866-438-8429invest@hexo.com www.hexocorp.com
Media Relations:(819)
317-0526media@hexo.com
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