Despite having the largest segment of market share in Canada, Quebec-based Hexo Corp. announced it will be laying off 450 people after revenue fell 14% in Q3 from the previous quarter, per BNN Bloomberg.
By the numbers:
- Revenue was up 101% at $45.6 million compared to a year earlier
- Losses reached $146.6 million, including an $83.1 million impairment charge associated with the closure of its Belleville, Ont. facility
- The company lost another $14.6 million in an inventory write-down
- Layoffs and cost cuts will save an estimated $30.6 million
Following the report on Wednesday, shares were at their lowest ever. Meanwhile, Tilray announced that it will be acquiring Hexo’s senior secured convertible notes at a lower price than previously announced.
About HEXO
HEXO is an award-winning licensed producer of innovative products for the global cannabis market. HEXO serves the Canadian recreational market with a brand portfolio including HEXO, Redecan, UP Cannabis, Namaste Original Stash, 48North, Trail Mix, Bake Sale, REUP and Latitude brands, and the medical market in Canada, Israel and Malta. The Company also serves the Colorado market through its Powered by HEXO® strategy and Truss CBD USA, a joint venture with Molson-Coors. With the completion of HEXO’s recent acquisitions of Redecan and 48North, HEXO is a leading cannabis products company in Canada by recreational market share. For more information, please visit hexocorp.com.
