HEXO launches cannabis value brand, Original Stash, with 1 oz product at $4.49 a gram including taxes
GATINEAU, Quebec, Oct. 16, 2019 (GLOBE NEWSWIRE) -- According to Statistics Canada’s latest National Cannabis Survey (published on August 15, 2019), almost half—over 40%—of Canadians continue to purchase cannabis from illegal sources, with price being one of the major factors that drive them to the black market. But do they realize that the cannabis they are purchasing is illegal, unregulated, and not tested? That’s what HEXO Corp (“HEXO” or the “Company”) (TSX:HEXO; NYSE:HEXO) set out to quantify.
“It is becoming increasingly difficult for the average consumer to distinguish products that are legal, versus those that are not. Illicit cannabis distributors have gone as far as include the mandated Health Canada warnings and THC disclaimers,” said Sebastien St-Louis, HEXO Corp’s CEO and co-founder. “Illegal cannabis websites are well built, allow consumers to purchase online, and products are delivered to their doors. But we know that illegal cannabis products can—and often—contain heavy metals, pesticides, and other contaminants, and that concerns me deeply.”
HEXO is committed to playing an important role in eliminating the black market and in protecting public health and safety, and to this end is pleased to announce the launch of Original Stash, its new value brand. Adult-use consumers will now be able to purchase 28 grams (1 oz) at black market prices, at a retail price in Quebec of $125.70 including sales taxes, equivalent to $4.49 a gram all in.
Original Stash’s?first product, OS.210, is offered as a hybrid sativa dried flower blend at 12%-18% THC. Original Stash comes in odour-proof and resealable packaging and will be available in SQDC retail stores on October 17, 2019. The product will roll out in the rest of Canada soon after.
“Our aim with Original Stash is to disrupt the illicit market, educate consumers about the value of a regulated and tested product, and drive them to purchase their cannabis legally,” added St-Louis. “We’re now competing directly with the illicit market and providing consumers with an affordable, controlled, quality product. Moreover, we are giving consumers the option of less packaging in a 1 oz format, which we know is a priority for so many.”
A national survey conducted by Abacus Data found that one third of Canadians who purchase cannabis edibles and topicals are not aware that the products they are purchasing are distributed unlawfully. A follow-up survey conducted by Abacus Data found that one in five Canadians who purchased dried flower or capsules from an illegal online retailer was not aware that it was illegal for them to do so.
Moreover, the initial survey found that:
15% of Canadians say they have purchased dried flower since legalization and 4% purchased capsules. 55% purchased in a physical retail store, 28% in a legal online store. But 1 in 5 say they purchased on "another online store or website" and 31% purchased from "another source" - i.e. a black market source |
