HEXO Provides Update on "The Path Forward"; Maintains #1 Position in Canada and Announces Redecan Product and Market Expansion
This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated May 11, 2021 to its short form base shelf prospectus dated May 7, 2021 and amended and restated on May 25, 2021.
GATINEAU, Québec., Jan. 25, 2022 (GLOBE NEWSWIRE) -- HEXO Corp. (TSX: HEXO; NASDAQ: HEXO) ("HEXO" or the “Company"), a leading producer of high-quality cannabis products, today provided an update
on its previously announced strategic plan, "The Path Forward", designed to solidify HEXO’s position as the number one cannabis company in Canada by recreational market share, with the goal of
becoming the first amongst its peers to be cash flow positive from operations.
“The Path Forward is made up of both expense and growth initiatives. Today’s announcement of new product launches supports our strategy to accelerate growth through organic market share gains and speaks to our commercial capabilities and strong innovation pipeline,” said Scott Cooper, CEO of HEXO. “To that end, HEXO is seeing significant demand for its products and brands across multiple categories and geographies and we continue to remain focused on our growth objectives.”
HEXO is committed to providing its shareholders with updates as the Company executes the strategic plan. Today’s announcement provides updates to one of the five strategic pillars: (i) “Accelerate growth through organic market share gains”.
Accelerate Growth Through Organic Market Share Gains
i. Redecan announces expansion into the low-cost, high-margin edible cannabis market with Redebles
Today, HEXO’s subsidiary, Redecan, announced that it had entered the cannabis edibles category in Canada with a new gummy confection called Redebles.
Redebles are a unique flavour-forward experience containing four gummies at 10 mg of THC per pack and sold at an MSRP of $5.95. The gummies are made with CO2 extracted cannabis distillate, vegan friendly and gluten free ingredients, and are sugar coated.
Redecan is the brand leader across several cannabis product categories. Today’s news marks the brand’s entrance into edibles; the fastest growing cannabis category in Canada. HEXO hopes that Redecan’s innovative, low-cost, and high-quality edible offering will disrupt the marketplace and quickly become an industry leader.
ii. Redecan enters new markets
HEXO is also pleased to announce that Redecan’s best-selling products are now available for sale in additional Canadian provinces, including Nova Scotia, New Brunswick, and Manitoba. Redecan is now represented in nine provinces and territories.