Hexo Shareholders Approve Tilray Buyout, Company Loses $117 Million In Fiscal Q3

Hexo Corp (TSX: HEXO) shareholders have formally approved the proposed acquisition by Tilray Brands (TSX: TLRY). The approval was granted yesterday at the firms special meeting of shareholders.

The transaction brings to an end the story of yet another cannabis company in the Canadian landscape as consolidation continues in an effort to achieve profitability. The deal will see shareholders receive 0.4352 shares of Tilray for every common share of Hexo held.

READ: Hexo To Be Acquired By Tilray For US$56.0 Million

The arrangement was approved by 93.7% of all votes cast at the meeting.

Hexo will now seek a final order from the Ontario Superior Court of Justice to proceed with the transaction, with the final closing of the arrangement slated to be completed by June 30.

Third quarter decline

At the same time, Hexo last night reported its fiscal third quarter financial results, posting a decline of net revenues of 11% on a quarter over quarter basis, and a 53% decline on a year over year basis, falling to $21.6 million.

Cost of goods sold meanwhile exceeded revenues at $29.1 million, leading to a gross loss before fair value adjustments of $7.5 million. Things got no better from here, with total operating expenses hitting $111.4 million, lead by impairment of property, plant and equipment of $54.9 million and impairments on intangible assets of $18.8 million, presumably in an effort to clean up the balance sheet before merging with Tilray. Transaction costs added a further $19.7 million to the operating expenses.

Overall, the company posted a loss from operations of $120.7 million, leading to a net loss of $117.2 million after certain tax recoveries. Adjusted EBITDA meanwhile came in at negative $3.9 million.

Hexo last traded at $1.00 on the TSX.


Information for this briefing was found via Edgar 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.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Zenabis Reports Q4 Revenues Of $15.9 Million, Net Loss Of $30.1 Million

Zenabis Global (TSX: ZENA) last night quietly filed its fourth quarter and full year 2020...

Thursday, April 1, 2021, 07:11:14 AM

Hexo Shakes Up Board Of Directors Following Activist Investor Intervention

Hexo Corp (TSX: HEXO) this morning announced minutes before the opening bell that it is...

Tuesday, February 22, 2022, 02:56:00 PM

Rough Week In Cannabis Sector Capped With Gut Punch From Ontario

This first week of April has been the never-ending week for the cannabis industry that...

Friday, April 3, 2020, 03:24:27 PM

Hexo Corp Sees Strategic Reorganization Push Out CEO, COO

It may have taken several years of declining valuation and a couple questionable transactions, but...

Monday, October 18, 2021, 08:15:15 AM

Hexo: Canaccord Cuts Price Target In Half To $1.00

On December 14th, Hexo Corp (TSX: HEXO) reported its fiscal first quarter 2022 results. The...

Saturday, December 18, 2021, 01:23:00 PM