Earlier this week, HEXO Corporation (HEXO.TO) (HEXO) filed a Form 6-K with the US Securities and Exchange Commission (SEC) after reporting to have repaid the total outstanding balance on its credit facility from February 14, 2019. The credit facility agreement was with the Canadian Imperial Bank of Commerce as sole book-runner and the Bank of Montreal as co-lead arranger and syndication agent.
According to the release HEXO paid almost $29 million (includes the accrued interest and associated fees) and we believe the development provides the Canadian cannabis producer with better financial flexibility.
The timing that is associated with this development is significant as HEXO continues to focus on executing on its US expansion plan as well as its goal to become a top two Canadian Licensed Producer (LP) from a recreational cannabis sales standpoint.
During the last year, HEXO has reported a series of major milestones that related to the cannabis beverage vertical and strategic international markets. We are especially excited about the company’s leverage to Israel and consider it to be one of the most exciting burgeoning international cannabis markets.
In regards to the Canadian recreational cannabis market, we believe HEXO could accomplish its goal of becoming a leading operator in the vertical. Through a strategic relationship with Molson Coors, the Canadian LP has been capitalizing on the cannabis beverage market in Canada and the US (only CBD infused beverages in the US).
HEXO creates and distributes innovative products to serve the global cannabis market. The company serves the Canadian recreational market through its HEXO, HEXO Plus, Up, Original Stash and Bake Sale brands. We are favorable on the increase in the number of brands that fall under the HEXO umbrella and will monitor how it continues to grow the business.
If you are interested in learning more about how HEXO plans to capitalize on the global cannabis market, please send an email to firstname.lastname@example.org with the subject “HEXO” to be added to our distribution list.
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