HEXO (OTCMKTS:HYYWF) has acquired a 100% stake as per the previously agreed arrangement in Newstrike Brands Ltd (OTCMKTS:NWKRF). The deal comprises all the outstanding and issued shares of Newstrike.
Controls 558.971 million shares
Following the takeover, Hexo gets control over 558.971 million shares of Newstrike and representing a 100% stake.
Chief Executive Officer and co-founder of Hexo, Sebastien St-Louis said the takeover marks a new and adventurous beginning for the company. The talented teams of both firms would engage in moving forward the vision of Hexo to form the best cannabis technology firm. He congratulated the entire team and especially Jay Wilgar for the trust they reposed in Hexo to grow together.
Formalizes a presence in the US
Hexo has appointed Chief Financial Officer to formalize the presence in the US. With the appointment of Michael Monahan as CFO and the creation of Hexo USA Inc, the company is on the path to offer consistent cannabis experience to the users in the US through the launch of easy to use, innovative and branded products.
Sebastien said he has been touring the US explaining the story of Hexo to the potential and present investors. The company has been sharing the vision and intends to operate in the legalized cannabis market in the US. The establishment of Hexo USA Inc and appointment of US-based CFO are the right steps in this direction.
Hexo is one of the biggest companies in Canada engaged in the production of cannabis under license. Its manufacturing facilities are located in Quebec and Ontario. The company also established a footprint in Greece for Eurozone production, processing, and distribution centre establishment.
To form Truss, the company established a partnership with Molson Colors Canada. Truss will be responsible for the production of cannabis-infused beverages to meet the demand for the legal market in Canada. Hexo is well positioned to enjoy a considerable market share following the passage of the US farm bill that allows extraction of cannabidiol from hemp.
CFO said Sebastien had done an excellent job along with the team to ensure long-term success for Hexo. Manohan is pleased to join as it expands overseas.