Cannabis  June 29, 2021

Canadian cannabis company buys Fort Collins production facility

FORT COLLINS —  Hexo Corp. (NYSE: HEXO), a Canadian cannabis company serving the consumer-packaged-goods market, has acquired a production facility in Fort Collins that will support its U.S. expansion.

The company, based in Ottawa, Ontario, Canada, purchased the 43,280-square-foot industrial/flex property at 1331 Red Cedar Circle, according to a press release from commercial brokerages NAI Affinity and CBRE.

Hexo’s U.S. subsidiary, Hexo USA, paid almost $6.4 million to two entities — 1331 RC Partners LLC and Country Grove LLC on June 23.

The acquisition marks Hexo’s first facility in the U.S., Hexo said in a separate press release. The company operates a joint venture with Molson Coors Beverage Co. (NYSE: TAP) to produce non-alcoholic, hemp-derived CBD beverages.

“The Colorado facility will allow us to successfully execute on our U.S. strategy,” Hexo CEO and co-founder Sebastien St-Louis said in a prepared statement. “The facility will also provide us with the necessary infrastructure to continue expanding our joint-venture with Molson Coors to create Truss CBD-infused beverages, while also creating the necessary capacity to support future, non-beverage CPG partnerships.”

Hexo said the facility also will provide U.S. consumer-packaged-goods companies with access to Hexo technology and products.

“The Colorado production facility, Hexo’s first in the U.S., is zoned for production of a full range of cannabis products and offers a variety of operational capabilities,” the company said.

Hexo’s Fort Collins property is comprised of five industrial condominium units and is located within the Colorado Enterprise Zone and Federal Opportunity Zone.

Listing brokers included Jake Hallauer, president of NAI Affinity, and T.J. Antinora, vice president, advisory and transaction services, for CBRE.

“This transaction represents an excellent opportunity for Hexo USA Inc. to  occupy a large, well-equipped and well-located light industrial facility with somewhat unique zoning,” Hallauer said in a prepared statement. “1331 RC Partners did an outstanding job of repositioning what started as a tired industrial building into a Class A light industrial property with much improved functionality and aesthetics.”

Antinora said the sale is “a perfect testament to the ever-growing demand for  industrial and flex facilities in Fort Collins and the greater Northern Colorado region.”

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