Toronto (CNW) – Molson Coors Canada (MCC), the Canadian business unit of Molson Coors Brewing Company (NYSE: TAP; TSX: TPX), and HEXO Corp. (TSX: HEXO) announced that they have closed the transaction announced on August 1, 2018, to form a joint venture to pursue opportunities to develop non-alcoholic, cannabis-infused beverages for the Canadian market following legalization.
FVN reached out to Molson Coors to see if this will be brewed at the new Chilliwack brewery, expected to go on line in 2019. Josh Stewart with Molson Coors told FVN that this beverage WILL NOT be made at the Chilliwack plant. “It is a separate joint venture based out of Toronto and Quebec.”
The joint venture, Truss, will be led by former Molson Coors executive, Brett Vye, in the role of Chief Executive Officer. Vye will report to the Truss board of directors consisting of three members appointed by MCC and two members appointed by HEXO.
Truss is structured as a standalone company with its own board of directors and independent management team. MCC (Molson Coors Canada) has a 57.5% controlling interest with HEXO holding the remaining 42.5%. The five-member board of directors for the joint venture will initially comprise Frederic Landtmeters, President and CEO of MCC; Paul Holden, VP of Legal and Industry Affairs of MCC; Scott Cooper, VP, Global Innovation of Molson Coors (Chairman of the Truss Board); Sebastien St-Louis, CEO and co-founder of HEXO, and Ed Chaplin, CFO of HEXO.
In connection with the closing of the transaction, HEXO has issued to MCC 11,500,000 warrants, each of which is exercisable to purchase one common share of HEXO at an exercise price of $6.00 for a period of 3 years.