Hexo The appointment of Scott Cooper to the PDG post well received

Bay Street accueille favorablement la nomination du nouveau PDG du producteur de pot de Gatineau Hexo, Scott Cooper, un vétéran du secteur des produits de consommation.

"It's promising," comments analyst John Zamparo, at World Markets CIBC.

Scott Cooper is the big boss of Truss Beverages, a joint venture created by Molson Coors Canada and Hexo to launch non -alcoholic drinks infused with cannabis.

"Name a person [to whom the organization is familiar] should accelerate the development of the company while their knowledge of the cannabis industry should make it [at ease] with the regulations, tastes and preferences ofconsumers, as well as with the general dynamic in the sector, ”adds John Zamparo.

Restoring the credibility of the company to investors, achieving profitability and integrating recent acquisitions are the priorities at Hexo, according to this expert.

Tamy Chen is optimistic due to the success obtained by Truss under the direction of Scott Cooper.However, she adds to remain "prudent" by what Scott Cooper specifies the strategy he intends to put forward.

Before becoming CEO of Truss last year, Scott Cooper spent a dozen years at Molson Coors where he held several management positions.He was notably responsible for innovation.Before working at Molson Coors, he had been a manager at Sobeys, Unilever and Cadbury, among other things.

If he immediately becomes CEO of Hexo, he will simultaneously continue to exercise his current role as CEO of Truss for a maximum of six months, time to allow a "harmonious" transition for the company.

This situation can pose a risk for Hexo, according to John Zamparo, since the role of CEO in Hexo is particularly demanding, in particular because of the current needs in terms of the integration of recent acquisitions.

Hexo made three this year (Zenabis Global, 48 North and Redecan).

Hexo announced on Monday the immediate departure of his CEO and co-founder, Sébastien St-Louis, and the resignation of the operations chief, Donald Courtney.The latter however continues to exercise his functions until a replacement is found.

Hexo underlines by press release that Scott Cooper is well placed to integrate recent acquisitions and take advantage of lighter production capacities, brands and the company's offer of products to carry it out in the next stage of its strategic evolution.

The changes to the management team occur after an influential investor has exerted pressure on the board of directors.

According to BNN Bloomberg, investor Adam Arviv sent a letter to Hexo administrators on September 26, stressing in particular that Sébastien St-Louis over-indebted the company to finance the purchase of two companies in difficulty (Zenabis and 48 North) andthat hexo was not managed in the best interest of its shareholders.

Still according to Bnn Bloomberg, Adam Arviv recommended in his letter that the board of directors appoints to the CEO the current Hexo finance chief, Trent Macdonald, the former co -owner of Redecan, Pete Montour, or Vincent Chiara, whois a member of the Hexo Council and Mach Group President.

Privileged supplier of the Quebec Cannabis Society (SQDC), Hexo was founded by Sébastien St-Louis and Adam Miron in 2013 under the name of Hydropothicaire.The company had changed its identity in 2018 to adopt the name Hexo.

Hexo's headquarters was recently brought back to Gatineau after being relocated to Kanata, in the suburbs of Ottawa, twenty months ago.

The hexo workforce is today around 1,500 employees, of which nearly 400 are in Quebec, mainly in Gatineau.

Hexo's action sold almost 7 % on Wednesday to end at $ 2.24 in Toronto.The title had nevertheless won 15 % the day before.