A cannabis products company which closed its Belleville plant last year is being bought out by a minority partner.
Tilray Brands Inc. is buying Hexo Corp. in an all-share deal valued at US$56 million aimed at helping the business navigate a “challenging” cannabis market that has seen significant price compression.
Hexo closed its Belleville operation last April, putting 230 people out of work.
The arrangement will see Tilray issue 0.4352 shares of its stock for each outstanding Hexo share.
Tilray chief executive Irwin Simon positioned the deal as a way to increase the company’s market share, broaden their product offerings and deliver at least $25 million in additional cost savings on an annualized basis.
The transaction must be okayed by the courts and receive the support of about 66 per cent of Hexo shareholders at a forthcoming meeting. The companies expect the deal to close in June.
WITH FILES FROM THE CANADIAN PRESS
