First announced back in October of 2018, HEXO Corp’s (TSX:HEXO; NYSE-A:HEXO) 1,000,000 sq. ft. greenhouse expansion is now operational and has completed a first full harvest of cannabis.
Plants that were moved into the facility at the beginning of the year have officially been harvested this week, with an expected total output of 108,000 kg of dried flower product annually to be distributed for both the recreational and medical markets across nine provinces.
With the revamped location now harvesting cannabis following the final phase of construction, HEXO expects to bump up its current 600 strong employee roster by opening an additional 300 positions at the Gatineau, Quebec greenhouse.
Chief Executive Officer Sébastien St-Louis commented on this company milestone and its expected short term impact:
HEXO recently released Q2 2019 financial data, showing a company on the verge of profitability with low overall production costs. A full analysis of that financial reporting from Grizzle’s head of research can be found here.
In other recent major company news, HEXO entered an agreement last month to acquire Newstrike Brands Ltd. (TSX-V: HIP).
The $263 million all-share deal sees HEXO also acquiring Newstrike’s licensed producer Up Cannabis, which has a partnership with rock band The Tragically Hip. Between the expanded Gatineau facility and the existing production capacity of Newstrike, HEXO has significantly increased its supply capacity in recent months.
HEXO additionally joined the Food & Consumer Products of Canada association in March, opening up potential partnership opportunities as the cannabis sector is welcomed into legalized Canadian business circles.
On the food and beverage front, HEXO is currently in an agreement with Molson Coors Canada to develop cannabis-based, non-alcoholic drinks. Although THC and CBD infused drinks haven’t yet fully hit the market, infused beverages are expected to become a major focal point for cannabis companies in the coming year.
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