Benzinga | May 14, 2021 02:24PM EDT

Hexo's Shares Slightly Up On Its First Production Facility In The U.S.

Hexo Corp (TSX:HEXO, NYSE: HEXO)) confirmed Friday it will acquire its first U.S. production facility via its U.S. subsidiary for an undisclosed price. The facility covers 50,000 sq. ft. and is located in Northern Colorado.

Through this acquisition, U.S. consumers will be able to access the Canadian cannabis company's offering.

"Signing the Purchase and Sale Agreements is an important milestone as we continue to expand into the US market," HEXO CEO and co-founder Sebastien St-Louis stated. "The Colorado facility will be instrumental to successfully executing on our US strategy, which includes the supply of high quality Powered by HEXO (r) technology to our current and potential multinational CPG partnerships in the United States."

This facility would also enable Hexo to commence with manufacturing activities and to further broaden its joint-venture with Molson Coors Brewing Co (NYSE: TAP) to craft Truss CBD-infused beverages, added St-Louis.

The company's first production facility in the U.S. is equipped for the manufacture of a variety of cannabinoids, and it can support Powered by Hexo initiatives across the country. Powered by Hexo is the company's solution for giant CPG companies to "safely enter the cannabinoid market."

The transaction is projected to close during the fourth quarter, upon fulfilling the standard customary closing requirements.

Hexo's shares were trading 4.20% at $6.09 per share at the time of writing.

Photo by Esteban Lopez on Unsplash