Troubled cannabis giant Hexo is finally moving to restructure the company to cut costs and recover after a 2021 that saw the Canadian LPs shutting down facilities and laying off staff.
Hexo has indeed announced that it's going to move vape and distillate production to the recently acquired Redecan facility. On top of that, the company sold its 25% interest in the Belleville Complex to Olegna Holdings Inc. for approximately CA$10.1 million. Olegna is the owner of the other 75% of the facility and Hexo will continue to lease the facility for processing, manufacturing, and distribution. The company believes that in doing so and through further optimization, they could save approximately $30 million.
That aside, Hexo said that it is going to carry out a series of cost-saving initiatives to cut 30% of the company's cost.
Such an announcement is anyway to take with a grain of salt. While some of the initiatives have taken place already, certain results are based on expectations and anticipated revenue growth. Hexo's debt is allegedly around CA$402 million.