A cannabis production company that’s about to set up a massive facility in Belleville is expanding.
HEXO has purchased Newstrike Brands Limited in an agreement worth approximately $263 million.
Newstrike is the Canadian cannabis company backed by the Kingston based band The Tragically Hip.
The purchase agreement, which was unanimously supported, allows HEXO to produce approximately 150,000 kgs of cannabis annually.
The agreement will see HEXO obtain four cutting-edge facilities, totaling 1.8 million square feet of cultivation space, with state of the art cultivation infrastructure.
This is in addition to the 579,000 square foot facility here in Belleville, located at the former Sears warehouse.
The two companies have distribution agreements in eight provinces.
HEXO CEO and co-founder Sebastien St. Louis says with this purchase agreement, they are taking HEXO to the next level and are committing to achieving over $400 million in net revenue in 2020.
Jay Wilgar, CEO of Newstrike says they believe combined, they can meet growing consumer demand nation-wide.
HEXO estimates by 2020, gross revenues from the sale of cannabis in Canada will exceed $479 million.
