Corporate Highlights
- Formation of the joint venture ‘Truss’ with Molson Coors Canada to pursue opportunities to develop non-alcoholic, cannabis-infused beverages for the Canadian market
- Supply agreements with the Ontario Cannabis Store and the British Columbia Liquor Distribution Board to supply the award-winning sublingual mist Elixir products, as well as Fleur de Lune, an intimate cannabis oil, in Ontario
- First global foray with partnership with Greek company Qannabos and plans to establish a Eurozone processing, production and distribution centre in Greece, including the development of 350,000 sq. ft. of licensed infrastructure
- First harvests from new 250,000 sq. ft. greenhouse, increasing annual production capacity to 25,000 kg of dried flower
- Foundation and framing for the 1,000,000 sq. ft. greenhouse completed (completion remains on track for December 2018)
- Acquisition of an interest in a 2,004,000 sq. ft. facility in Belleville, Ontario, providing capacity for the manufacturing of advanced cannabis products
- Contract with Metro Supply Chain Group contract to manage a warehouse and distribution centre for Quebec adult-use webstore orders for the Société québécoise du cannabis (“SQDC”) in modern 58,000 sq. ft. facility located in Montreal
- Strategic investment of $10 million in the independent corporate cannabis retailer Fire and Flower Inc., through a convertible note receivable
Financial Highlights
- Revenue per gram increased to $9.26 per gram equivalent from $9.24 in the prior quarter, and $9.00 in the fourth quarter of fiscal 2017
- Revenue increased 14% to $1,410,656 quarter over quarter and the volume of cannabis dried grams and gram equivalents sold increased 13% to 152,288 from the third quarter of fiscal 2018
- Ontario-based sales increased 15% during the quarter ended July 31, 2018
- Weighted average cash cost of dried inventory sold per gram of $0.90 held relatively steady from $0.88 per gram in the third quarter of fiscal 2018 and decreased 14% year-over-year compared to the fourth quarter of fiscal 2017
- Cash and short-term investments were $244.8 million as at July 31, 2018, and the balance sheet remained debt-free
“The past quarter has signified many milestones for HEXO Corp as we moved towards final preparations for the adult-use cannabis market. With two additional supply deals, this time in Ontario and in British Columbia, the establishment of a joint venture with Molson Coors Canada to develop cannabis-infused non-alcoholic beverages, a first step towards going global, and more, I’m extremely proud of the speed at which we continue to execute on our strategic priorities,” said Sebastien St-Louis, HEXO’s CEO and co-founder, referring to its commitment to being one of the top two licenced producers in Canada, to operational scalability, to brand leadership and to new product innovation.
Fourth Quarter 2018 Results
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