Hexo was forced to take a $2.4M writedown on its inventory of cannabis trim (lower-cannabinoid leaves and stems, collected for processing into extracts for edibles and vapes). Cannalyst Andrew “Mollytime” Udell said, “Producers were accumulating this byproduct for cannabis 2.0. There’s so much of it,” which is a problem considering producers may also be holding large stockpiles of high-value, high-cannabinoid buds.
Financial Post

These are the latest signals Hexo is struggling. In late October, it laid off 20% of its workforce, while in early November, the company announced a loss three times greater than analysts predicted.

Along with Organigram and the Green Organic Dutchman, Hexo has announced plans to reduce production until the market can bear it.