This press release constitutes a “designated press release” for the purpose of the Company’s prospectus supplement dated May 2, 2022 to its short form base prospectus dated May 7, 2021 as amended and restated on May 25, 2021.
GATINEAU, Quebec, Oct. 31, 2022 (GLOBE NEWSWIRE) — HEXO Corp. HEXOHEXO (“HEXO” or the “Company”), a leading manufacturer of high-quality cannabis products, today released its financial results for the fourth quarter (“Q4’22”) and fiscal year ended July 31, 2022 (“FY22”). . All currency amounts are in Canadian thousands unless otherwise noted.
“The fourth quarter was a time of strategic realignment for HEXO,” said Charlie Bowman, HEXO President and CEO. “We have been focused on making the changes that will allow HEXO to maintain and expand our strong position in the Canadian cannabis market. By dedicating ourselves to three key priorities – aligning the company for success, refocusing the organization for profit and growth, and providing a preferred cannabis experience for its customers and other stakeholders – we have taken the necessary steps to position the company for long-term success to position ourselves and have emerged stronger as a company.”
“The refinancing of the senior secured convertible notes will free up the balance sheet and increase cash reserves, allowing us to focus on profitable growth,” said Julius Ivancsits, HEXO’s acting chief financial officer. “We are very focused on cash flow and to that end have reduced our labor costs by $65 million, exited businesses that do not provide HEXO with a competitive advantage, and focused on our earnings quality while optimizing our working capital. We also streamlined to upgrade our product mix.”
“With a solid foundation now in place, HEXO has entered the second phase of our transformation – focusing on manufacturing the core brands and products customers want, leading in innovation and strengthening our market share,” added Mr. Added Bowman. “We have evolved our leadership across the business and are benefiting from…
