Molson Coors Canada, the Canadian arm of Molson Coors Brewing Company’s (NYSE:TAP; CVE:TPX), has closed a transaction with Hexo Corp (CVE:HEXO, OTCMKTS:HYYDF) to launch Truss, a line of non-alcoholic cannabis-infused beverages.
The joint venture will be a stand-alone company led by Coors exec Brett Vye. Its board will include three members appointed by Coors and two 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 Truss CEO Brett Vye in the company’s press release.
Medical and recreational cannabis use is set to be legalized in Canada on October 17.
"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,” he added.
As per the closing agreement, Hexo has issued Molson Coors Canada 11,500,000 warrants, each of which is exercisable to purchase one common share of Hexo at $6 each for a period of three years.
Hexo is the producer behind the Hydropothecary medical cannabis brand while Molson Coors Canada is the country’s second-largest brewer by volume, selling about one-third of the total Canadian beer market in 2017.
Coors’ brand portfolio includes its namesake brand as well as Blue Moon, Molson Canadian, Miller Genuine Draft and Zima.
Shares of Molson Coors were up less than 1% to $61.80 in Friday morning trading while Hexo shares saw a slight boost to $6.56.
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