CANADA – Molson Coors Canada, the Canadian business unit of Molson Coors Brewing Company, and HEXO Corp. have announced that they have closed the deal to form a joint venture to pursue opportunities to develop non-alcoholic, cannabis-infused beverages for the Canadian market following legalization.
HEXO is an adult-use cannabis brand built by innovators and explorers, with its headquarters located in Canada.
According to the company, 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.
“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,” said Brett Vye, Chief Executive Officer at Truss.
“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.
Why “Truss”? We are joining together the extensive experience and excellent practices of each partner to build a powerful foundation for the future.”
Vye brings a decade of experience in leading successful brand building and integration efforts, as well as executing long-term growth strategies.
Vye served as the Chief Commercial and Strategy Officer for the fast-growing International division of Molson Coors from 2015 to September 2018.
Previously, he served as Chief Commercial Officer of Global License and as Managing Director of IOP Sales at Molson Coors.
Vye has also worked in a number of commercial roles internationally for Colgate Palmolive/Hills Pet Nutrition.
Truss is structured as a standalone company with its own board of directors and independent management team.
MCC 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 US$6.00 for a period of 3 years.