HEXO Corp. (TSX: HEXO) announced with Molson Coors Canada (MCC) the two companies have closed their previously announced joint venture agreement. The joint venture agreement between the two companies is to create non-alcoholic beverages infused with cannabis for sales distribution in Canada after full cannabis legalization on October 17th, 2018.
The formed joint venture by the two companies, Truss, will be controlled by a former Molson Coors executive and the Truss board of directors. The board of directors for Truss will consist of three members chosen by MCC and two HEXO appointed members.
In accordance with the transaction’s closing, HEXO has issued 11,500,000 warrants of HEXO to MCC that are equivalent to one HEXO common share at a price of $6 for a 3 year period.