Hexo launches new CBD beverages in Colorado

Hexo Corp (NYSE: HEXO) posted revenues of $ 32.8 million in the 2nd quarter of 2021, up 94% year over year. The company had sales of $ 3.2 million in UP cannabis for the quarter. Sebastien St-Louis, Hexo CEO, said the company launched CBD beverages powered by Hexo in Colorado in Q4 2020. He went on to say that the company has improved its margins and sales with the relaunch of UP Cannabis. Hexo gained market share in Canada by focusing on delighting its customers. It claims a top spot in Quebec. The company's recent decision to acquire Zenabis will reward shareholders and fuel global and national growth. With the acquisition of Zenabis, Hexo will also strengthen its position among the three largest licensed manufacturers of cannabis for adult use in Canada. The deal is subject to investor approval and regulatory approvals. Charles Bowman took over as General Manager (US Operations). Sebastien said Charles brings extensive experience in operations and commercial growth. Charles will play an important role in expanding Hexo's presence in the US and supporting the growth initiatives of the JV - Truss CBD USA. In addition to commissioning production facilities in the USA, Charles will also strengthen logistics and the supply chain and build a team. Sebastien said the company will use capital to develop processing and manufacturing facilities in Colorado using Hexo technology. US strategy is critical to supporting Hexo's growth. A lawsuit is being filed in the United States Court for SD (Southern District) of New York alleging that Hexo has omitted material information and made material misstatements in its previous disclosures to investors. The lawsuit identifies the directors, past and current executives responsible for publishing false statements regarding sales in 2020 and 2019 that misled investors. The SD of New York dismissed the allegations made in the lawsuit and granted Hexo a reprieve on May 8, 2021. With this win, Hexo can continue building its global brand while mitigating the strain caused by the lawsuit. Hexo deals with the development and distribution of innovative products for the global cannabis market. It serves the adult use market in Canada under the brands Hexo Cannabis, Original Stash and Up Cannabis.