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HEXO rises up to the challenge of higher than expected demand for cannabis
GATINEAU, Quebec, Oct. 22, 2018 (GLOBE NEWSWIRE) -- Taking its preferred supplier status with the Société québécoise du cannabis (SQDC) and its deals with Ontario and British Columbia seriously, licensed cannabis producer HEXO is proud to not only have delivered on all orders but to have also replenished stock across the country.
While it was difficult for provinces and experts to predict just what the demand for cannabis would be once legalized, the actual demand far exceeds any reasonable expectations. Stores across the country – online and bricks and mortar – have been challenged to obtain and restock product, but the availability of HEXO products has been reliable.
“HEXO has risen to the challenge of a much higher than anticipated demand during the first few days of legalization, and we are very pleased with their responsiveness,” said Jean-François Bergeron, the Société des alcools du Québec’s Vice-President of Supply Chain. “Thanks to HEXO’s preparedness, we have been able to provide and maintain customer service to the SQDC’s clients, even with this higher demand.”
In its 310,000 sq. ft. production facility, HEXO has produced enough of its high quality dried flower, oils, milled flower and pre-rolled cones to meet the initial demand and to send resupply shipments ahead of schedule, ensuring stores and distribution centres have undisrupted access to products. The company reports that it has pulled all stops to meet the demand, shipping several times over the weekend.
“We’ve been focused on executing all of our plans for several weeks, and I am proud that our team’s dedication and capability has meant that customers’ access to HEXO product has been dependable. Sales have been good, and we’ve been able to keep up,” added HEXO CEO and co-founder Sébastien St-Louis. “We said we were ready; now we have proved it.”
HEXO’s newest expansion, a 1,000,000 sq. ft. greenhouse on its Gatineau property, will increase the company’s production capacity to 108,000 kilograms of dried flower annually. The construction project is running on time and on budget, with completion expected at the end of 2018.
About HEXO Corp.
HEXO Corp. 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 over 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.