Saturday, July 12, 2025

Latest

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.

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

Kerrisdale Targets Tilray On Short Report: “Structurally Unprofitable”

Kerrisdale Capital Management, a renowned short seller, has released a scathing report on Tilray Brands...

Monday, September 18, 2023, 11:04:24 AM

Hexo Corp Falls Out Of Listing Compliance With Nasdaq, Has 180 Days To Correct Issue

As was expected by many followers of the Canadian cannabis space, it appears that Hexo...

Monday, January 31, 2022, 08:05:59 AM

Can Hexo Afford The Original Stash Product Line?

Hexo Corp (TSX: HEXO) (NYSE: HEXO) has had a rough go at the cannabis sector....

Monday, December 30, 2019, 05:02:24 PM

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

Federal Wage Subsidies Granted to Publicly Traded Cannabis Companies Eclipses $100 Million

On June 1, 2021, total wage subsidies doled out to publicly traded cannabis companies from...

Wednesday, June 2, 2021, 02:30:00 PM