Wednesday, January 5, 2022

HEXO and Redecan - Update III


S├ębastien St-Louis
Jean-Francois Cloutier reports that Health Canada has completed its review of Josh Hill, Redecan and HEXO. HERE. In October, S├ębastien St-Louis, co-founder and CEO, left the company. The Permanent Anti-Corruption Unit (UPAC) announced the next month that it was investigating the pot producer in connection with the presence of a close relative of the Hells Angels in his entourage. The UPAC is a Quebec government agency whose aim is to fight corruption, collusion and other economic crimes involving government procurement.
Things SURELY ain't looking good for those buried in HEXO paper. One might say HEXO paid 5X too much for Redecan, with a very flawed $925m deal that included $435m in fully secured US cash due in May 2023. ($241m owing) HEXO's capitalization is now something around $300m. Impossible to 'know' but the boys behind HEXO and Redecan appear to have pulled off a securities scam that robbed HEXO stakeholders stupid. HEXO appears doomed, and this is another black eye for securities regulation in Canada. HEXO's NASDAQ listing will be pulled in time, but thats minor compared to the chit waiting to hit the fan.
There was news as Will Montour (right) joins his brother on the BoD: "Hexo Corp. has appointed William Todd Montour to the company's board of directors ... Mr. Montour played a critical role in transforming Redecan from a medical supplier to a recreational cannabis powerhouse. Before joining Redecan, Mr. Montour spent 13 years supporting his family's tobacco company, the largest privately owned Indigenous company globally."
Hexo has denounced what it calls "false allegations" circulating about it and said it operates "at the highest standards of legal and regulatory compliance." Le Journal de Montreal reported last week that there are "troubling links" between Josh Hill and Hexo, one of the biggest suppliers to Quebec's cannabis retailing monopoly. Josh Hill is the son of Ken Hill, who made a fortune selling bootleg cigarettes from Ontario's Six Nations reserve before his death in 2021.
"Health Canada is keeping up with the news and following up with the license holders in question. The Department takes any notice of potential involvement with organized crime in the cannabis industry seriously.” Redecan was bought by HEXO in May for $925m. It had among its major shareholders the family of Josh Hill, who appears openly as an HA associate.
Joshua Raymond Hill was the sole director of one of eight numbered companies that were shareholders of Redecan.

Josh Hill (left) with HA Dwayne Patrick Smith (center) and HA Joel Rollin (right)
One of Quebec's largest pot suppliers acquired a business linked to a close friend of the Hells Angels. Josh Hill is a major shareholder of cannabis producer Redecan, and his family are now shareholders of Quebec cannabis giant HEXO since the latter bought Redecan in May 2021. https://www.hexocorp.com/Josh Hill (right) with HA Jason Hall
Josh Hill had an office at Redecan.
Current directors of HEXO Peter James Montour and Will Montour with Josh Hill.
The co refuses to answer any questions.

Josh Hill with HA Dwayne Patrick Smith.