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With Mike Tyson In Its Corner, Hexo Looks To Duplicate Indiva’s Success

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The struggling cannabis company gets another shot at building a profitable cannabis business with one of the world’s best known athletes

Hexo Partners With Mike Tyson

Hexo Corp. (TSE:HEXO) recently announced a new partnership with Mike Tyson, the former heavyweight boxing champion of the world. Under the terms of the exclusive collaboration, Hexo will manufacture TYSON 2.0’s full line of cannabis products in Canada.

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TYSON 2.0 is the boxer’s newly created cannabis brand. As the exclusive Canadian producer of TYSON 2.0’s full range of cannabis products: flower, pre-rolls, edibles and vapes, Hexo is expected to have these products ready for a fall launch. 

“We’re delighted that HEXO has been chosen as the exclusive Canadian producer for TYSON 2.0 brands,” said Charlie Bowman, CEO of HEXO Corp.

“Our boutique cultivation capabilities and product offerings enable HEXO to elevate the consumer's cannabis experience. With their broad product range from flower to straight edge pre-rolls to edibles, the TYSON 2.0 brand fits perfectly into HEXO's market-leading portfolio.”

In addition to co-founding TYSON 2.0, Mike Tyson is the brand's Chief Brand Officer. 

With co-founder and president Chad Bronstein, the boxer launched the cannabis brand in late 2021. It’s now available in 24 U.S. states. The two entrepreneurs have big plans for the brand on both sides of the U.S.-Canada border. 

In the U.S., Columbia Care (CA:CCHW) produces Tyson 2.0, which is in the final stages of being acquired by Cresco Labs (CA:CL). Columbia Care sells the products at its 99 dispensaries and wholesale partners. 

The asset-light business model employed by Tyson 2.0 has been successful in the U.S., so now it’s bringing the model to Canada through Hexo. 

“Our partnership with HEXO allows us to deliver TYSON 2.0’s vision of a premier cannabis experience to Canadians,” noted Chad Bronstein, Co-founder, President and Chairman of TYSON 2.0.

“TYSON 2.0 is dedicated to bringing innovative cannabis products to market, and HEXO’s strong reputation as the leader in quality standards made them the obvious choice in Canada.”

Hexo’s shares might be down 70% year-to-date, but the latest announcement reminds investors that the company remains a quality cannabis producer in Canada. 

A Similar Deal To Indiva's Partnership

Further, the Hexo deal is similar to Indiva Ltd.’s (CVE:NDVA) partnership it signed in 2020 with Wana Brands, one of North America’s leading edibles producers. The partnership gave Indiva the right to manufacture and distribute Wana’s products in the Canadian market. 

As of June 30, 2022, Indivas’s edibles accounted for 31.6% of Canadian edibles sales, making it the clear leader in the growth category. In 2021, edibles accounted for nearly 90% of Indiva’s annual revenue of $32.5 million. 

Hexo CEO Charlie Bowman recently admitted that the alliance and debt deal it completed with Tilray (CA:TLRY) in July could ultimately end up with the struggling cannabis company being acquired by its much larger partner.

“If Tilray one day decides to acquire us, they’re going to acquire the best cannabis company in the world,” Bowman told MJBizDaily contributor Solomon Israel in August.  

“If they don’t, they’ve made a great strategic investment to get a return on their business as our stock goes up.”

The TYSON 2.0 partnership provides Tilray with another reason to bring Hexo in-house. 

Article by Will Ashworth, Fintel