HEXO Corp. (TSX:HEXO), one of the Canadian marijuana stocks, announced the completion of the first harvest at its one million sq. ft. greenhouse expansion
SmallCapPower | April 4, 2019: HEXO Corp. (TSX:HEXO), one of the Canadian cannabis stocks, Monday reported the completion of its first harvest at its one million sq. ft. greenhouse expansion, marking an important execution milestone for the Company. HEXO has become a global cannabis company, operating 1.8 million sq. ft. of facilities in Ontario and Quebec and a foothold in Greece to serve the European markets.
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The Company started cultivating plants in one million sq. ft. in early January, which now has been harvested. HEXO continues to ramp up to full harvest capacity using the continuous harvest methodology, the latest step towards reaching the full annual production capacity of 108,000 kg of dried flower per year.
HEXO Corp. CEO and Co-Founder Sébastien St-Louis said, “Completing the first harvest in our 1,000,000 sq. ft. greenhouse expansion showcases the dedication and hard work of the entire HEXO team. We are very proud of our continued ability to execute on our plans, creating value for our shareholders and demonstrating our commitment to our customers. This cultivation milestone means that an expanded HEXO product offering will be available to more Canadians shortly.”
The Company has also been on a hiring spree, with headcount exceeding 600 employees. HEXO expects to hire another 500 employees in the coming months; 300 additional positions at its campus in Gatineau, Quebec; and 200 in its Belleville, Toronto, and Montreal locations.
On March 13, 2019, HEXO signed a definitive agreement to acquire Newstrike Brands Ltd, which would boost HEXO’s production capacity to 150,000 kg annually, diversify its domestic market penetration to provinces including Ontario, Quebec, British Columbia, Alberta, Saskatchewan, Manitoba, Nova Scotia, and Prince Edward Island and add infrastructure with four cutting-edge production campuses totaling ~1.8 million sq. ft. of cultivation space. Further, the combined entity is estimated to realize annual synergies of $10 million.
HEXO Corp. stock currently trades at a market capitalization of C$1.9 billion with a price-to-book multiple of 4.4x.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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