Molson Coors Brewing Company (NYSE: TAP; TSX: TPX) and HEXO Corp. (TSX: HEXO) announced this morning that the companies have come to an agreement to joint venture to manufacture and develop a product line of non-alcoholic, cannabinoid-infused beverages for the Canadian market following the recreational legalization of cannabis on October 17, 2018.
The joint venture will operate under a company named Truss, which will be headed by Molson Coors Executive Brett Vye, as CEO. The new management team will be comprised of three members from both HEXO and Molson Coors respectively. MCC has a 57.5% controlling interest with HEXO holding the remaining 42.5%.
HEXO Corp. is in the process of expanding their 300,000 sq. ft. operating space to a total of 1,000,000 sq. ft. to meet the expected demand in the marketplace. By partnering with the Canadian branch of Molson Coors, HEXO will be able to reference to their expertise and experience in the development of beverages for consumers throughout the world.
HEXO has issued 11,500,000 warrants to Molson Coors Brewing Company, which will be exercisable to purchase one common share at an exercise price of $6.00 for a period of 3 years.
“With the backing of two partners with deep Canadian roots, proven success, and market-leading experience in the respective beverage and cannabis industries in Canada, Truss will hit the ground running. When consumable cannabis is legalized in Canada, Truss will be ready to make its mark as a responsible leader in providing high-quality beverages for the Canadian consumer,” said Brett Vye, Chief Executive Officer at Truss.