Hexo published a Friday-afternoon press release acknowledging growing took place in unlicensed rooms at its Niagara Falls production site.
- Hexo said in the release that the unlicensed growing took place on the site when it was owned and operated by Newstrike, which Hexo purchased this past summer.
- The company said confusion over licensing paperwork led Newstrike to believe its whole facility was licensed when the company began growing in unlicensed areas.
- Hexo claims it reported the unlicensed growing to Health Canada immediately upon discovering it. The company said Health Canada was satisfied with Hexo's handling of the situation.
Expect this story to dominate next week.