- HEXO will cease operations at three production sites
- The Kirkland Lake, Brantford and Stellarton facilities will be decommissioned early next year
- Approximately 155 employees are impacted
- HEXO is a licensed producer of innovative products for the global cannabis market
- HEXO Corp. (HEXO) is down 2.06 per cent, trading at C$1.90 per share at 10:45 am ET
HEXO Corp (HEXO) has provided an update on its integration plan following the acquisitions of Redecan, Zenabis Global and 48North Cannabis.
HEXO will cease operations at three production sites to centralize product cultivation, manufacturing, and distribution at its core facilities.
“As part of the integration planning process, we completed a comprehensive evaluation of all HEXO facilities to review their capabilities, capacity, and efficiency, and made the decision to centralize operations at our core facilities.
This decision is key to achieving our immediate priority of integrating our recent acquisitions to drive growth and profitability through the commercialization of cannabis consumer packaged goods products. We are confident that our core sites, combined with strategic partnerships, will ensure a sufficient supply of high-quality cannabis to meet demand,” said Scott Cooper, President & CEO, HEXO.
“This was a very difficult decision, but it is a key component of our integration plan, and one that we believe best positions HEXO for continued growth. I would like to thank all of the employees at Kirkland Lake, Brantford and Stellarton for their efforts, dedication and professionalism in helping build HEXO,” he added.
The following facilities will be decommissioned:
- Kirkland Lake, Ontario facility, which was acquired through the 48North acquisition, effective on January 31, 2022.
- Brantford, Ontario facility, which was acquired through the 48North acquisition, effective on January 31, 2022.
- Stellarton, Nova Scotia facility, which was acquired through the Zenabis acquisition, effective February 28, 2022.
HEXO is working closely with employees to reduce the impact of the decommissioning of these facilities. This includes relocating employees who take on roles at one of HEXO’s core facilities and supporting those who are not able to relocate with their search for employment.
Approximately 155 employees are impacted by this decision.
HEXO Corp. (HEXO) is down 2.06 per cent, trading at C$1.90 per share at 10:45 am ET.