Saturday, July 12, 2025

Latest

Hexo Corp Sees Shareholders Approve Acquisition Of Redecan

Hexo Corp (TSX: HEXO) (NASDAQ: HEXO) is set for some oncoming dilution. The company last night announced that its shareholders approved two major share issuances, both of which are related to the now approved acquisition of Redecan, a private cannabis operator in Canada.

The dilution events pertain to the acquisition of the licensed producer, as well as the funding obtained for the purchase. In terms of Redecan, the company has seen shareholders agree to the purchase of the firm for $400 million in cash as well as 69.7 million shares of the issuer, with 96.2% of shareholders agreeing to the purchase.

The second major dilution event pertains to the US$360.0 million senior secured convertible note financing conducted by the company back in May, which was conducted to fund a significant portion of the cash required to purchase Redecan. A total of 32.2 million shares are being issued in connection with the financing. The motion saw 95.0% of shareholders agree to the resolution.

The company has indicated that the purchase of Redecan will close “in the coming days” as a result of shareholders voting in favour of the resolutions.

Notably, the original price tag of $925.0 million for the Canadian cannabis producer has been reduced significantly following Hexo seeing its share price take a shellacking. With $525.0 million of the original transaction to be covered via a fixed number of shares, the firms falling share price has effectively reduced the value of those shares to $225.2 million based on yesterdays closing price, resulting in Redecan shareholders effectively seeing the overall price tag fall to $625.2 million – a 32.4% decline.

Hexo Corp last traded at $3.23 on the TSX.


Information for this briefing was found via Sedar and Hexo Corp. 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.

Video Articles

Mergers Set the Stage for Uranium’s Growth Cycle | Forum-Baselode Merger

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Recommended

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

Related News

Hexo Announces Financing With Zero Set Terms

Hexo Corp (TSX: HEXO) (NYSE: HEXO) needs money in a bad way. The problem, it...

Wednesday, April 8, 2020, 08:55:08 AM

Molson Coors Exits Cannabis Business With Divesture Of Truss Beverage Co To Tilray Brands

It appears that Molson Coors (NYSE: TAP) no longer wishes to be associated with cannabis...

Friday, August 18, 2023, 08:38:30 AM

Hexo Sees Revenues Decline 26% In Fiscal Q2

Hexo Corp (TSX: HEXO) this morning reported its fiscal second quarter 2023 results, which it...

Friday, March 17, 2023, 09:29:24 AM

Hexo Announces US$40 Million ATM Financing, Has Less Than Two Months Cash Remaining

Hexo Corp (TSX: HEXO) is looking to dilute its current shareholders once again. The firm...

Tuesday, May 3, 2022, 10:48:32 AM

Hexo Reduces The Consolidation Ratio For Common Shares

Hexo Corp (TSX: HEXO) (NYSE: HEXO) shareholders are undoubtedly celebrating this morning, following the announcement...

Monday, December 7, 2020, 07:25:35 AM