"We're extremely proud of our record of execution, and today are committing to achieving over $400 million in net revenue in 2020".
"Following a thorough assessment of security providers, we are satisfied that the world-class security services provided by Thomas and his expert team at 3 Sixty are the best choice to ensure the safety of our facilities and products", said Jay Wilgar, CEO of both Newstrike and Up Cannabis.
"All the LPs, including Hexo, generally underestimated the amount of packaging infrastructure and logistics and employees and space that it would take to actually do fulfillment", he said during a conference call to discuss its latest quarterly earnings. "But by the time you think about putting it in individual multi-line products, that's quite complex".
HEXO Corp Acquisition to Boost Brand Value, Reach
Since recreational marijuana was legalized in Canada previous year, two licensed pot producers have been sold for a fraction of their peak value. Health Canada defines finished inventory as cannabis held in stock that is ready for sale. "We're excited about Newstrike's agreement with the Neal Brothers to create specialty products for the edibles market and so that joint venture will be integrated into this acquisition", St. Louis explained.
That means inventory of dried cannabis that's ready for sale outpaced sales by a ratio of about 4:1 - a figure that contradicts the claim by most provincial regulators that the regulated market has a shortage of cannabis. Meanwhile, the finished oil inventory held by licensed producers rose by 24 per cent to 33,822 litres and by distributors and retailers by 29.8 per cent to 19,099 litres.
HEXO Corp. (HEXO) recently closed with fall of 6.16% to its 20-Day "SMA". "We announced that we would have one million square feet up and running by December last year, and we completed that promise and in under a year, we received all our licenses", said St. Louis.More news: Love Island's Muggy Mike Thalassitis found dead aged 26
The proposed deal would result in Newstrike shareholders owning 14 per cent of the combined company, with the rest owned by HEXO shareholders.
Quebec-based cannabis company Hexo Corp. The addition of Newstrike revs up the company's production capacity by almost 50% to 150,000 kilograms annually of high-quality cannabis.More news: Why Injured Nadal may not play against Roger Federer in Indian Wells
Following the acquisition HEXO will gain a supply deal in with the Ontario Cannabis Store (OCS) for 10,000 kg.
The company says the loss amounted to two cents per share for the quarter ended January 31. Newstrike's most recent quarterly report ending September 30, 2018 showed that the company realized a revenue of just over $3.4 million to the adult-use market.
Also, they reported a net loss of C$4.33 million in its fiscal second quarter in comparison to a loss of C$8.95 million posted in the year-earlier period.More news: Huawei Has an Android Alternative, But It Doesn't Want to Use It