HEXO Awarded Three Year Distribution Contract for Quebec On-Line Cannabis Distribution, Selects Metro as Third-Party Logistics Partner

Kanata, Ontario, CANADA

GATINEAU, Quebec, Sept. 19, 2018 (GLOBE NEWSWIRE) -- HEXO Corp. (“HEXO” or the “Company”) (TSX:HEXO) and Metro Supply Chain Group Inc. (“Metro”) announced today that they have signed a contract to manage a warehouse and distribution centre for Quebec adult-use webstore orders for the Société québécoise du cannabis (“SQDC”).

HEXO and Metro will work together to run the modern 58,000 sq. ft. facility located in Montreal. The facility consists of a warehouse and distribution centre, will house product from all the licensed producers who have contracts with the SQDC and will contribute to the creation of 35 new jobs in Quebec.

The distribution centre has been positioned in the Montreal area to facilitate logistics and provide a closer link to the majority of the Quebec population. The distribution centre will serve as the sole distribution point for all direct-to-consumer shipments within the province of Quebec for orders placed through the SQDC online webstore.

Additionally, HEXO has attained accreditation from the Autorité des marchés financiers to contract with government organizations such as the SQDC. This is a required authorization for companies conducting over one million dollars in business with the government of Quebec for both services and the supply of products.

“We are extremely proud to announce a distribution centre in Montreal, in collaboration with the SQDC and Metro Supply Chain Group, to serve the adult-use cannabis market,” said Sonia Isabel, HEXO’s Vice-President of Sales. “Being invited to collaborate on this distribution centre speaks to our proven reputation for exceptional customer service and order fulfillment.”

This is HEXO’s third Quebec facility following the recent lease of office space in downtown Hull and its long established 143-acre campus in Masson-Angers demonstrating HEXO’s deep commitment to and involvement in the province of Quebec.

“We’re pleased to have been selected by HEXO and the SQDC to bring our experience in distribution and e-commerce processing to this venture,” said Daniel Smedo, Metro’s Vice-President of Operations. “We look forward to working with all parties involved to deliver the systems and fulfillment expertise to ensure the success of this exciting new enterprise.”

“Metro will always have its roots in Quebec,” added Metro CEO and Founder, Chiko Nanji, who started the company with a single warehouse in the province in 1974. “It’s very meaningful for us to be working as a partner with the SQDC and HEXO, another Quebec company.”

The most recent agreement with SQDC combines Metro’s extensive warehousing and distribution efficiencies with HEXO’s cannabis production and control expertise. Together, HEXO and Metro will combine forces to service the direct-to-consumer (e-commerce) cannabis fulfillment needs for Quebec.

About HEXO

HEXO creates and distributes innovative, easy-to-use and easy-to-understand products to serve the Canadian cannabis market. One of the country’s lowest-cost producers, HEXO is rapidly increasing its production capacity in the lead up to the adult-use cannabis market. The Company currently operates with over 310,000 sq. ft. of production capacity with construction on another 1,000,000 sq. ft. expansion set to be complete by year end. HEXO will serve the adult-use market under the HEXO brand, while continuing to serve its medical cannabis clients through the well-known Hydropothecary brand.  

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