(This story has been updated to correct the timing of the Hexo shelf prospectus.)
Hexo Corp. signed purchase and sale agreements for a 50,000 square foot cannabis production facility in northern Colorado, a step forward for the Canadian manufacturer’s US ambitions.
A wholly owned US subsidiary is involved in Hexo’s first US plant, according to a press release on Friday.
The facility “is designed to produce a full range of cannabinoids and has multiple operational options,” said Hexo, headquartered in Ottawa, Ontario.
It will provide Hexo with the infrastructure necessary to begin production and allow the company to further expand our joint venture with Molson Coors to make Truss CBD infused beverages, while also having the capacity to support future CPGs. Creating partnerships without drinks. Sebasto St. Louis, CEO of Hexo, said in a statement.
Hexo’s press release did not provide any information on the cost of the facility or the city in which it will be located.
However, a Hexo shelf prospectus dated May 7 describes the company’s attempts to acquire and retrofit a manufacturing facility in Colorado, and the company confirmed to MJBizDaily that the facility identified in the prospectus and the facility announced on Friday are identical.
According to the disclosure document, Hexo expects to pay approximately $ 6 million to purchase the Colorado facility and $ 16.5 million to $ 49.5 million for the retrofit and improvement.
According to the prospectus, the system is used by Keystone Isolation Technologies USA (KIT USA), based in Ontario, a Hexo joint venture with the extraction technology company Chroma Global Technologies from British Columbia.
“KIT USA will enable state, hexocontrolled cannabis production to support the manufacture of CBD beverages and future products in the USA,” says the prospectus.
Hexo’s transaction is expected to close in the fourth quarter.
The company’s shares are traded as HEXO on the New York Stock Exchange and the Toronto Stock Exchange.