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HEXO Reaches Major Milestone in Ongoing Expansion Plans
GATINEAU, Quebec, July 23, 2018 (GLOBE NEWSWIRE) -- The Hydropothecary Corporation (“HEXO” or the “Company”) (TSX:HEXO) has reached a major milestone in its expansion plans, designed to position HEXO as one of the largest cannabis producers in Canada.
Health Canada has given final licensing for an advanced manufacturing facility that includes areas for dewaxing, distillation, milling and extraction that will provide HEXO the capability to transform, manufacture and package cannabis into a wide range of products. The expansion also includes secondary trimming zones, large storage areas and cleaning rooms.
These expanded capabilities will allow HEXO to continue to improve its existing products while simultaneously equipping the Company for the next round of products to become available under regulations.
The manufacturing area facilitates even larger scale production of the Company's award-winning, smoke-free products such as Decarb, an activated cannabis powder, Elixir, a sublingual cannabis oil, and the newly-launched Fleur de Lune, an intimate medical cannabis oil. The expansion also gives HEXO optimal positioning as the Company continue to prepare for the future adult-use beverage and edible cannabis market.
“We are extremely proud to offer multiple, award-winning, smoke-free cannabis products,” said Adam Miron, HEXO’s CBO and co-founder.
“This manufacturing expansion allows us to continue offering the smoke-free products that we are already known for, while constantly developing new, innovative ways for our medical and future adult-use clients to consume cannabis,” added Mr. Miron.
The expanded area also includes state-of-the-art automated primary and secondary packaging machinery, which will help meet the needs of the adult-use retail cannabis market by expediting production rates on all HEXO products.
The Company is also pleased to announce that all ten growing zones of its greenhouse expansion are now fully licensed by Health Canada.
“We are thrilled to that all ten growing zones in our 250,000 sq. ft. greenhouse expansion are licensed with more plants moving in,” said Sebastien St-Louis, HEXO's CEO and co-founder. “This is another achievement through our team’s exceptional planning and consistent execution as we continue to prepare for the adult-use cannabis market.”
Plants have been growing in previously licensed areas of the state-of-the-art greenhouse since June, which is in line with the Company's continual harvest process.
HEXO’s 250,000 sq. ft. greenhouse expansion, together with the manufacturing expansion, brings the Company’s production space up to a total of 310,000 sq. ft. Construction on the Company's one million square foot facility is set to be complete by year-end.
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 310,000 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.
This press release may contain forward-looking information that is based on certain assumptions and involves known and unknown risks and uncertainties and other factors that could cause actual events to differ materially from current assumptions and expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. A more complete discussion of the risks and uncertainties facing the Company appears in the Company’s Annual Information Form and continuous disclosure filings, which are available on SEDAR’s website at www.sedar.com. 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.
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release.
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/7dd307ae-3124-423e-8279-927c54ea53f8