OTTAWA, March 17, 2020 (GLOBE NEWSWIRE) -- HEXO Corp. (“HEXO” or the “Company”) (TSX: HEXO; NYSE: HEXO) today announced that it has not filed its interim financial statements and related management's discussion and analysis (“MD&A”) and certifications for the three and six month periods ended January 31, 2020 (the “Q2 2020 Filings”) by the filing deadline of March 16, 2020.
The delay in the filing of the Q2 2020 Filings has arisen due to certain exceptional circumstances, including that for the quarter ended January 31, 2020 (“Q2 2020”), the Company will be recording a significant impairment loss in the Q2 2020 Filings. The calculation of this impairment is complex and, while a value range for the impairment is known, the final amount remains to be determined. This impairment and certain other financial results for Q2 2020 are discussed below.
In addition, over the course of the past few weeks, the Company has been working on amending its MD&A for the fiscal year ended July 31, 2019 and the three months ended October 31, 2019 (the “Amended MD&A”) in connection with a continuous disclosure review by the Ontario Securities Commission (“OSC”). The amendments are being made to address comments received from OSC Staff and to strengthen the Company’s continuous disclosure record. The Company expects to file the amended MD&A on or about March 17, 2020. The Company has also required additional time to finalize the Q2 2020 Filings in order to incorporate certain disclosure being made in the Amended MD&A.
The Company has informed Staff of the OSC about its delay in the filing of the Q2 2020 Filings, and is in discussions with Staff about a potential application pursuant to Part 4 of National Policy 12-203 - Management Cease Trade Orders for a Management Cease Trade Order pending the filing of the Q2 2020 Filings depending upon the circumstances.
The Company has established a blackout on trading by directors, officers and other insiders of the Company, and the blackout will continue until the Q2 2020 Filings have been filed.
Pending the filing of the Q2 2020 Filings, the Company wishes to announce certain financial results for Q2 2020, as follows:
HEXO Corp. is an award-winning consumer packaged goods cannabis company that creates and distributes innovative products to serve the Canadian cannabis market. The Company serves the Canadian adult-use markets under its HEXO Cannabis, Up Cannabis and Original Stash brands, and the medical market under HEXO medical cannabis. For more information please visit hexocorp.com.
This press release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian and United States securities laws. Such statements are based upon the Company’s current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information and forward-looking statements can be identified by the use of forward-looking terminology such as "believes", "expect", "likely", "may", "will", "should", "intend", "anticipate", "potential", "proposed", "estimate" and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions "may", "would" or "will" happen.
The forward-looking information and statements in this news release include statements relating to the anticipated timing for filing of the Q2 2020 Filings, the Company’s financial results for Q2 2020 and the anticipated timing for filing of the Company’s amended MD&A for the fiscal year ended July 31, 2019 and the three months ended October 31, 2019. Forward-looking information and statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information and statements. Such factors include, but are not limited to: management's perceptions of the anticipated timeline in which the Q2 2020 Filings and the amended MD&A for the fiscal year ended July 31, 2019 and the three months ended October 31, 2019 can be completed and filed, results of operations, operational matters, historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. There can be no assurance that such information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Accordingly, readers should not place undue reliance on forward-looking information and statements. The Company disclaims any intention or obligation to update or revise any forward-looking information and statements, whether as a result of new information, future events or otherwise, except as required by law.