HEXO Corp. Announces the Sale of its Niagara Facility
June 17 2020 - 5:34PM
HEXO Corp. (“
HEXO”, or the
“
Company”) (TSX: HEXO; NYSE: HEXO) today announced
that it completed the previously disclosed sale of its Niagara,
Ontario facility for proceeds of approximately $10.25 million on
June 15, 2020.
The Company had determined to market the
facility for sale following a strategic review by the Company of
its cultivation assets in March 2020, in which it determined it no
longer expected to re-commence operations at the Niagara facility
due to an excess of cultivation capacity in the market and
estimated forecast demand for cannabis products, as result of
slower than expected market development. The sale of the Niagara
facility included land and greenhouse facilities, as well as
certain equipment.
The Company expects to use the proceeds from the
sale of the Niagara facility to fund additional expansion of its
Belleville, Ontario facility and for working capital and other
general corporate purposes.
About HEXO
HEXO Corp is an award-winning consumer packaged
goods cannabis company that creates and distributes innovative
products to serve the global cannabis market. 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”), including statements regarding the use of
proceeds from the sale of the Niagara facility.
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:invest@HEXO.comwww.hexocorp.com
Media Relations: (819) 317-0526
media@hexo.com
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