Hexo plans to enter 8 U.S. states in 2020 with CBD products
GATINEAU, Que. — Cannabis company Hexo Corp. says it plans to launch hemp−derived CBD products in eight U.S. states in 2020 under Truss, its joint venture with Molson Coors Brewing Co.
Hexo says it has secured a supply of 60,000 kilograms of hemp for extraction of CBD, the non−impairing compound which can be derived from both cannabis and hemp.
Pot remains illegal at the federal level south of the border, but the passage of a U.S. law known as the farm bill has allowed for the growing of hemp for the purposes of extracting CBD.
Hexo’s chief executive Sebastien St.−Louis would not say which states it was prioritizing, but the company expects to enter the U.S. legally through non−cannabis channels and launch a suite of products under Truss.
St−Louis added that Hexo plans to partner with Fortune 500 players to roll out a variety of hemp−derived CBD products, and it is in various levels of discussions with roughly 60 companies.
The company’s comments come as Hexo reported its earnings for its third quarter, during which the pot company saw net revenues of $13 million, below the $14 million expected by analysts surveyed by Thomson Reuters Eikon.
Companies in this story: (TSX: HEXO)
The Canadian Press