HEXO Reports Third Quarter 2022 Results

HEXO Reports Third Quarter 2022 Results

<![CDATA[GATINEAU, Quebec, June 14, 2022 (GLOBE NEWSWIRE) — PRESS RELEASE–HEXO Corp (TSX: HEXO; NASDAQ: HEXO), a producer of cannabis products, today reported its financial results for the fiscal quarter ended April 30, 2022 (Q3’22). All amounts are expressed in Canadian dollars unless otherwise noted.“HEXO is committed to streamlining our operations across all functions, allowing our top-selling brands to remain competitive in the marketplace whilst aligning to our long-term financial objectives of becoming cash flow positive and driving growth,” said HEXO CEO Charlie Bowman. “As we move forward, we remain keenly focused on our financial objectives and taking the necessary steps to achieve them, including maintaining a lean organization and concentrating on operational excellence.”Significant Financial Results & EventsOn April 12, 2022, HEXO entered into definitive agreements with Tilray Brands Inc. to restructure the terms of the Senior Secured Convertible Note. Amongst other amendments, the notes maturity will be extended by three years and the equity condition clause will be removed, relieving the company from the punitive dilution pressure under the notes current structure.Concurrent with the definitive agreements, HEXO entered into a definitive equity purchase agreement with an affiliate of KAOS Capital Inc, which when completed, will provide HEXO access to an aggregate $180 million over a 36-month period.During the quarter, Management announced the closure of the centralized processing and manufacturing facility in Belleville ON. The decommissioning and phase out process is expected to be finalized by the end of July 2022. The company has begun to transition these operations to other existing sites to further streamline operations and capitalize on production efficiencies.Net sales decreased 14%, quarter over quarter, led by a reduction of international and adult-use sales.Total impairment losses of $83,171 were recognized in Q3’22, pertaining to the company’s property, plant and equipment, due to the above Belleville closure and due…

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Source : HEXO Reports Third Quarter 2022 Results

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