48North Cannabis Corp. (TSXV: NRTH) shared on Tuesday that its shareholders greenlit the previously announced 100% equity acquisition of the company by Hexo Corp (TSX: HEXO). The proposed plan of arrangement related to the transaction was voted in favor by 98.27% of the shareholders present during the special meeting.
Under the arrangement, 48North shareholders will receive 0.02366 Hexo shares for each share held. Approximately, existing shareholders will hold 5,352,038 Hexo shares, or 3.39% of the float, upon the transaction’s close. Per the last closing price, the exchange ratio translates to $0.103 per 48North share and puts the transaction value north of $23.2 million – a far cry from the original $0.175 equivalent shareholders expected to receive at the time of announcement.
The shareholders who attended virtually or represented by proxy in the special meeting to approve the arrangement represent 95,203,773 shares of 48North, or 42.25% of the issued and outstanding shares as of record date July 13, 2021.
The transaction is expected to close on September 1, 2021, subject to approval from the Ontario Supreme Court of Justice and other customary closing conditions.
48North Cannabis last traded at $0.10 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.