Hexo Corp (NYSE:HEXO) posted revenues of CAD 32.81 million (up 94% YoY) in Q2 2021. The revenues from non-beverage adult-use cannabis revenues in Canada increased 72% YoY in Q2 2021.
In Quebec, Hexo maintained a leading market share. The revenues of adult-use cannabis in the rest of Canada accounted for 49% of the total sales of Hexo.
The UP cannabis brand posted revenues of $32.9 million. It accounts for 8% of non-beverage adult-use revenues in Q2 2021 compared to the previous quarter.
Developments after Q2 2021
Hexo Corp inducted Charles Bowman to head the US operations as General Manager. Sebastien St-Louis, CEO of Hexo Corp, said Charles will contribute his extensive experience in operations and commercial growth to expand its presence in the US.
Sebastien said the company is pleased to appoint Charles to lead its teams because it supports the Truss CBD USA growth initiatives. Charles will be stationed in the US to take care of US operations such as overseeing operations, commissioning manufacturing facilities, developing the team, and managing logistics and supply chain.
Sebastien further said the company will deploy additional capital to develop processing and manufacturing facilities soon in the state of Colorado using Hexo technology. It is vital for promoting growth in the US.
Charles brings experience in building natural biotech ingredients for wellness, wealth, and health markets. His previous stints include senior leadership roles in managing ingredient suppliers like Solazyme, CP Kelco, Solix Algredients, BGG, Cargill, and Terravia.
Charles played a vital role in customizing innovation using his extraction expertise, strengthening customer partnerships, and promoting growth.
Inks a pact to acquire Zenabis Global Inc
Hexo Corp entered a deal to take over all of the outstanding and issued common shares of Zenabis Global Inc. It is an all-stock transaction valued at $235 million. As per the terms of the pact, the shareholders of Zenabis will get a 0.01772 share of Hexo Corp for each of their shares.
The transaction gives Hexo Corp access to the medical cannabis market in Europe with a local partner of Zenabis. Following the takeover, Hexo Corp will generate annual revenues of $20 million within one year.
Hexo Corp can also use the licensed capacity to manufacture 111,200 kg of premium quality cannabis per annum.