Hexo Corp. Continues To Lay The Groundwork To Execute In The United States

In 2020, HEXO Corp (TSX: HEXO) (NYSE: HEXO) captured the attention of the market and proved to be a turnaround strategy in the making. Due to the success of the business in 2020, the stock market rewarded the Canadian cannabis company, and this is a trend that we are closely following this year.

One of the primary reasons to explain HEXO’s turnaround in 2020 is related to the advancements that it made on the US side of the business. Another key reason for the turnaround is related to its joint venture agreement with Molson Coors Beverage Company (TAP) to capitalize on the cannabis beverage market. We are bullish on HEXO and Molson’s potential to capitalize on the global cannabis beverage market and are favorable on the recent additions that it made to the team.

Yesterday, HEXO reported a significant development as it relates to the opportunity in the US and appointed Charles Bowman as General Manager of its US operations. He will immediately join the team and adds nearly three decades of experience to the HEXO USA team. We consider his appointment to be a strategic addition and will monitor how he is able to advance the US side of HEXO’s business.

As General Manager, Bowman will be responsible for implementing all aspects of HEXO’s operations in the US. These responsibilities include but are not limited to the commissioning of production facilities, overseeing operations, managing the supply chain as well as logistics, and making strategic additions to the team.

With Bowman’s addition to the team, Truss Beverages (the name of the joint venture between Molson and HEXO) is better positioned to ramp up production capacity and support the growth initiatives of the US CBD beverage brand. In Canada, Truss Beverages sells THC beverages, and we expect this product to be sold in the US once the federal government legalizes THC.

We expect the addition of Bowman to support the advancement of HEXO’s focus on identifying potential non-beverage consumer packaged goods (CPG) partners. We are favorable on the potential impact that Bowman could have on the US side of HEXO’s business and believe that our readers need to be aware of this.

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