Exclusive interview of The Cannabis Stock
A few days before the release of the Q1 2020 financial statements of the company HEXO corp. (TSX: HEXO, NYSE: HEXO), The Cannabis Stock has met a Sebastian St-Louis more confident than ever.
Mr. St-Louis, who is one of the most experienced CEOs of a cannabis company in the world, has just received a big vote of confidence from his board of directors. The company has just completed its previously announced private placement for aggregate gross proceeds of $70 million.
The investment was led by the directors and long-term shareholders of which Mr. St-Louis alone contributed more than $2 million.
“This financing shows that investors have confidence in HEXO”
According to Mr. St-Louis, the company, which is number 1 in Quebec, is now well positioned to be top 3 in the world in the years to come …
“The board of directors has given me the mandate to become one of the 3 largest cannabis companies in the world”
Sebastien St-Louis, who has an MBA in finance from UQAM, as well as a bachelor’s degree in economics and a master’s degree in quantitative finance, started his career as a technology entrepreneur, then worked for about 10 years in large commercial companies and participated to more than $100 million in funding.
Mr. St-Louis was then head of operation in a car parts company before creating the company Hydropothecary which later became HEXO.
Mr. St-Louis says he comes from a modest background and started with nothing. He quickly learned to know the value of money and took risks to build the company we know today.
“HEXO was the 17th company in the country to obtain a medical cannabis license and today we are Canada’s leader and the 1st in Quebec”
Mr. St-Louis mentions that his background in sport has led to a culture of teamwork and helped advance the company, which has more than 1,000 employees, many of whom come from companies such as Pepsi, Kellogg, and others.
His goal with HEXO
Mr. St-Louis says he has an incredible platform with HEXO to become one of the 3 largest cannabis companies in the world and a future fortunes 500
“We want to create phenomenal and reliable cannabis experiences that people will be able to find in thousands of products to improve their lives”
Products to come
Hexo is working on several advanced, longer-term products, some of which affect sleep and appetite. In the short term, HEXO focus on pure cannabis products, the latest on the market being the Original Stash and other formats to be announced soon.
Drinks and vapes are also short-term products for the companies. The vapes are currently in clinical study to ensure product safety.
“The technology developed for the vapes only includes molecules from the plant. It’s pure cannabis without any additives for safety “
Mr. St-Louis tells us that he does not want to announce 2.0 products before they are ready to be launched nationally as in the case of their “Original Stash”.
Hexo do not want to repeat the mistake they made with their Elixir product. This product had been advertised well in advance and had been copied quickly.
The “Power by HEXO” strategy
Mr. St-Louis says that some time ago, he was in discussions with more than 60 companies but after several discussions and negotiations, this number is now about 35.
“The good news is that of this number, 3 could be signed in the short term”
According to Mr. St-Louis, the success that will be demonstrated in the short term with TRUSS will undoubtedly help to speed up the process.
“The big tobacco companies are way ahead right now in negotiations with HEXO and the others are the edibles companies.”
HEXO is currently working with its partners to enter the United States and to ensure product quality and compliance with both the FDA and the DEA.
Mr. St-Louis informs us that the company has a legal entry for the United States but does not want to give too much information to its competitors.
“We do not need a regulation from the FDA to enter the United States”
Mr. St-Louis tells us that HEXO has the license and that the project plans are done but he mentions that business model will be reviewed in the new context of the markets.
The joint venture held 51% by HEXO will finance itself without additional funds from HEXO.
Sebastien St-Louis says the company is stronger operationally now than it has been in the last 7 years.
“We are well positioned to achieve the goal that I set myself 7 years ago to be a fortune 500”
According to Mr. St-Louis, HEXO will be among the 5 companies that will survive in Canada and have 20% of the $10 billion in medium-term revenue
“HEXO has the potential to be a Fortune 500 in the next 10 years with revenues of more than $5 billion”
HEXO plans to release its complete financial results for the quarter ended October 31, 2019 on Monday, December 16, 2019, before markets open, as well as host a webcast for investors and analysts at 8:30 a.m. EST that same day
This article is written and published by The Cannabis Stock
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