Expanding into European Union member nations where medical cannabis is now becoming more widely available, HEXO Corp. (TSX: HEXO; NYSE-A: HEXO) just landed a new cannabis license in Greece.
The company’s medical affiliate HEXO MED SA was granted a medical cannabis installation license this week, allowing the company to utilize a future cultivation and processing site in the Thessaly region.
Construction on that new greenhouse and processing facility is slated to kick off near the end of the year, with a projected 323,000 sq. ft. of operating capacity to be built in the city of Larissa.
Discussing the move toward a global presence beyond the borders of Canada, HEXO’s Chief Executive Officer Sebastien St-Louis commented:
HEXO recently completed another major greenhouse construction project, wrapping up work on the company’s Gatineau, Quebec-based 1,000,000 sq. ft. greenhouse project earlier this year.
That site completed its first full major harvest of plants back in April, and is expected to hit an output capacity of 150,000 kg of various dried flower products annually.
HEXO also just released the company’s Q3 2019 financial reporting yesterday, showing a major increase in overall production from the previous quarter, with a total of 9,800 kg of dried cannabis produced.
With additional staff hired at the expanded Gatineau location, the company also saw its overall workforce more than double, with over 800 employees currently on the roster.
The company reported a net loss of $7.75 million for the quarter, with a net revenue of just under $13 million. Additional highlights on the Q3 earnings report can be found here.
HEXO additionally entered a credit facility this past quarter to raise $65 million for continuing operational expansion. Part of the expansion included acquiring 60,000 kg of hemp, which will be extracted into CBD products as the company eyes moving into the U.S. CBD market next year.
The market has seen explosive growth in recent months, particularly as companies continue to place a wide variety of CBD products into gas station convenience stores and major pharmacy chains.