The Globe and Mail reports in its Saturday, Nov. 16, edition that Hexo said Friday it grew weed in an unlicensed facility, but federal regulators cleared it of any wrongdoing.
The Globe's Andrew Willis writes that the problems occurred at a facility in Ontario's Niagara region previously owned by Newstrike Brands, which Hexo acquired in July. Newstrike began growing cannabis at the site in November, 2018, after receiving what it believed to be the right paperwork from Health Canada. Federal inspectors subsequently visited the site in February and raised no questions about the pot crop.
In July, shortly after the Newstrike acquisition closed, Hexo discovered the site was not adequately licensed. Hexo said Friday: "Hexo management immediately ceased cultivation and production activities in the unlicensed space. The company notified Health Canada instantly, and the regulator was satisfied with Hexo management's corrective actions."
Hexo closed the Niagara facility in October as part of a cost-cutting effort. On Friday, the company said, "Hexo is choosing to pro-actively address this occurrence now as it recently became aware of false information that was being circulated to damage the reputation of the company."
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