HEXO Corp. (TSX: HEXO; NASDAQ: HEXO) ("HEXO" or the “Company"), a
leading producer of high-quality cannabis products, today provided
an update on its previously announced strategic plan, "The Path
Forward", designed to solidify HEXO’s position as the number one
cannabis company in Canada by recreational market share, with the
goal of becoming the first amongst its peers to be cash flow
positive from operations.
“The Path Forward is made up of both expense and
growth initiatives. Today’s announcement of new product launches
supports our strategy to accelerate growth through organic market
share gains and speaks to our commercial capabilities and strong
innovation pipeline,” said Scott Cooper, CEO of HEXO. “To that end,
HEXO is seeing significant demand for its products and brands
across multiple categories and geographies and we continue to
remain focused on our growth objectives.”
HEXO is committed to providing its shareholders
with updates as the Company executes the strategic plan. Today’s
announcement provides updates to one of the five strategic pillars:
(i) “Accelerate growth through organic market share gains”.
Accelerate Growth Through Organic Market
Share Gains
i. Redecan
announces expansion into the low-cost, high-margin edible cannabis
market with Redebles
Today, HEXO’s subsidiary, Redecan, announced
that it had entered the cannabis edibles category in Canada with a
new gummy confection called Redebles.
Redebles are a unique flavour-forward experience
containing four gummies at 10 mg of THC per pack and sold at an
MSRP of $5.95. The gummies are made with CO2 extracted cannabis
distillate, vegan friendly and gluten free ingredients, and are
sugar coated.
Redecan is the brand leader across several
cannabis product categories. Today’s news marks the brand’s
entrance into edibles; the fastest growing cannabis category in
Canada. HEXO hopes that Redecan’s innovative, low-cost, and
high-quality edible offering will disrupt the marketplace and
quickly become an industry leader.
ii. Redecan
enters new markets
HEXO is also pleased to announce that Redecan’s
best-selling products are now available for sale in additional
Canadian provinces, including Nova Scotia, New Brunswick, and
Manitoba. Redecan is now represented in nine provinces and
territories.
iii. HEXO
expands Latitude, a brand with products ranging from sexual
wellness to beauty and beyond
Today, HEXO’s subsidiary Latitude launched
additional innovative wellness products including a transdermal
cream and a CBD-forward body lotion.
HEXO’s commitment to Latitude highlights the
Company’s focus on innovation and understanding of the
sophisticated and maturing cannabis customer.
iv. Additional
product launches
Today, HEXO also launched additional new
products including, Original Stash Vape, Super Sour Diesel, OS.ONE
Durban Poison and Garlic Jelly pre-rolls and dried flower, and UP
Cannabis 3.5g bags of Ultra Sour, Lemon Z and Gelato 29.
Market Share Update
HEXO remains focused on its mission to become
the leading Canadian licensed cannabis producer. To achieve this
goal, the Company maintains its position as a producer across
several product categories across multiple geographies and is
working to capture additional market share in categories and
geographies where the Company has identified growth
opportunities.
To that end, HEXO believes that market share
data is an important indicator of competitiveness in the Canadian
recreational cannabis marketplace and a predictive indicator of
sustainable revenues.
Below is a snapshot of HEXO’s position in the
Canadian recreational marketplace according to Headset, a
third-party cannabis data and market intelligence solution, on a
three-month rolling average for October, November and December
2021.
- #1 in Canadian
market share
- #1 overall
producer across all categories in Ontario and Alberta
- #1 pre-roll
producer in Canada
- #1 beverage
producer in Canada
- #1 capsule
producer in Canada
- #1 oil producer
in Canada
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. 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.
This press release should be read in conjunction
with the management's discussion and analysis ("MD&A") and
unaudited condensed consolidated interim financial statements and
notes thereto as at and for the three months ended October 31,
2021. Additional information about HEXO is available on the
Company's profile on SEDAR at www.sedar.com and EDGAR at
www.sec.gov, including the Company's Annual Information Form for
the year ended July 31, 2021 dated October 29, 2021.
About HEXO
HEXO is an award-winning licensed producer of
innovative products for the global cannabis market. HEXO serves the
Canadian recreational market with a brand portfolio including HEXO,
Redecan, UP Cannabis, Namaste Original Stash, 48North, Trail Mix,
Bake Sale, REUP and Latitude brands, and the medical market in
Canada, Israel and Malta. The Company also serves the Colorado
market through its Powered by HEXO® strategy and Truss CBD USA, a
joint venture with Molson-Coors. With the completion of HEXO's
recent acquisitions of Redecan and 48North, HEXO is a leading
cannabis products company in Canada by recreational market share.
For more information, please visit hexocorp.com.
For further information, please
contact:
Investor Relations:
invest@hexo.comwww.hexocorp.com
Media Relations:
(819)-317-0526media@hexo.com
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