HEXO’s New Licences Allow for the Sale of Cannabis Edibles, Beverages, Extracts and Topicals
HEXO and JV Partner Molson Coors to Release New Flow Glow CBD Beverage This December
HEXO Corp. (TSX: HEXO) (NYSE: HEXO) announced this morning it has received its Cannabis 2.0 research and sales licences from Health Canada. The new sales license will allow HEXO to sell cannabis edibles, beverages, extracts and topicals from its flagship Gatineau, Quebec campus. The research and development (R&D) license was granted to the company’s Centre of Excellence in Belleville, Ontario.
“The research licence will allow us to take our innovation work to the next level, with testing on derivative products, including taste testing. Consumers have high expectations for their packaged goods experiences, and cannabis will be no different. We are committed to not only ensuring a quality consistent experience but to also guaranteeing that experiences powered by HEXO meet these expectations,” said HEXO CEO Sebastien St-Louis.
The newly minted R&D licence will allow HEXO to bolster the amount of research the company can do on new Cannabis 2.0 products before they hit the market. In addition to HEXO’s Belleville Centre of Excellence, the company will also be able to conduct R&D at its Innovation, Development and Engineering hubs in Vaughan and Montreal.
HEXO’s Centre of Excellence in Belleville which also received a first phase license from Health Canada was previously a distribution centre and has since been retrofitted for the company’s needs. The Centre was also designed for HEXO’s Fortune 500 partners entering the cannabis industry to utilize. The facility has an abundance of room for HEXO and its partners to manufacture new Cannabis 2.0 products such as edibles, vapes, non-alcoholic beverages, extracts, topicals and cosmetics.
The Centre of Excellence has a convenient, centralized location in Ontario located near primary shipping routes. This will allow HEXO to efficiently process and distribute its products across the country.
A first licence is a required step by Health Canada for a company wishing to deliver Cannabis 2.0 products to Canadian consumers. It also signals the regulator’s support for HEXO’s production and distribution hub. HEXO officially submitted its 60-day notification to Health Canada for new products in the Legalization 2.0 edibles and extracts product categories.
The company has been granted an amended licence by Health Canada allowing the company to sell cannabis edibles, extracts and topicals from its Gatineau cultivation, harvesting and production facility.
“We trust that by continuing to demonstrate Good Production Practices, by operating in complete alignment with regulations, and by working closely with our partners, licences and amendments will be issued in a timely manner that supports a vibrant and healthy legal cannabis sector,” added St-Louis.
In other HEXO related news, the company’s cannabis beverage joint venture (JV) partner, Molson Coors (NYSE: TAP) announced it will roll out its line of CBD-infused beverages this December through its JV company, Truss Beverage Co. The companies will release a portfolio of drinks later this year called Flow Glow. Initially, Flow Glow will be available in Goji+Grapefruit and Raspberry+Lemon flavours with 10mgs of CBD per serving.
Shares of HEXO stock closed trading today at $3.03 per share, down 2.6% on the day. HEXO is expected to report Q4 earnings this evening.
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