GATINEAU, Quebec, Sept. 26, 2018 (GLOBE NEWSWIRE) -- HEXO Corp. (“HEXO” or the “Company”) (TSX:HEXO) plans to establish a Eurozone processing, production and distribution centre in Greece. The partnership with Greek company Qannabos (“QNBS”) will catalyze a vertically integrated cannabis enterprise to capitalize on the current medical markets. HEXO’s plan to establish operations in Greece marks the Company’s first foray into the European cannabis market. The move will provide the company presence in Europe to supply a full suite of brands in France, the United Kingdom, and other European markets once regulations permit.
“I’m excited to add European distribution capabilities for HEXO and its joint venture partners,” said Sebastien St-Louis, HEXO Corp.’s CEO and co-founder. “By bringing brands powered by HEXO, our infrastructure and our know-how to Europe, we will be well prepared to serve a burgeoning market. This new capability will allow us to bring even more value to our hub and spoke partners in the beverage, cosmetics, and food space by giving them access to licensed cannabis infrastructure and brands in Europe. Additionally, HEXO believes that we will quickly be able to leverage our joint venture partners’ networks to take significant first mover advantage and market share.”
The agreement between HEXO and QNBS plans for the development of 350,000 sq. ft. of licensed infrastructure that will be used for manufacturing, processing and distribution of medical cannabis products, powered by HEXO, destined for the European market.
“We are thrilled to be partnering with HEXO to bring legal medical cannabis expertise to Greece,” said QNBS’ co-founder, Leonidas Garyfallos. “Our goal is to create high-quality products and to build relationships with clients that are based on trust; trust in our quality, trust in our approach to business, and trust in our ability to deliver on our commitments. These are values that HEXO prioritizes and we look forward to working with them to serve the European market for years to come.”
HEXO’s plan to establish operations in Greece is the Company’s first step to seeking significant first mover advantage and market share in the adult-use cannabis market in Europe, which is estimated to reach approximately $110 billion annually by 2028. Greece legalized cannabis for medical use in March 2018 but has yet to license any cannabis producers in the country.
Closing of the transaction is subject to the satisfaction of certain conditions including satisfactory due diligence, negotiation of definitive agreements and receipt of any required regulatory approvals.
About HEXO Corp.
HEXO Corp. creates and distributes innovative, easy-to-use and easy-to-understand products to serve the Canadian cannabis market. One of the country’s lowest-cost producers, HEXO is rapidly increasing its production capacity in the lead up to the adult-use cannabis market. The Company currently operates with over 310,000 sq. ft. of production capacity with construction on another 1,000,000 sq. ft. expansion set to be complete by year end. HEXO will serve the adult-use market under the HEXO brand, while continuing to serve its medical cannabis clients through the well-known Hydropothecary brand.
About QNBS
QNBS is a medical cannabis company based in Greece. It is QNBS’s vision to develop Europe’s highest quality, lowest-cost producer and distributor of medical grade cannabis. Combining the skills of a multidisciplinary team with the latest technology in the industry to standardize the cultivation and production process, QNBS aims to gain its clients’ trust while shaping the European medical cannabis industry. QNBS’s local network and trusted service providers forms the backbone of its success.
Forward-Looking Information
This press release may contain forward-looking information that is based on certain assumptions and involves known and unknown risks and uncertainties and other factors that could cause actual events to differ materially from current assumptions and expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. A more complete discussion of the risks and uncertainties facing the Company appears in the Company’s Annual Information Form and continuous disclosure filings, which are available on SEDAR’s website at www.sedar.com. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements as a result of new information or future events, or for any other reason.
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