Friday, August 22, 2025

Hexo To Be Acquired By Tilray For US$56.0 Million

It appears that Sebastian St-Louis’s “billion dollar start-up” has finally been sold. Hexo Corp (TSX: HEXO) this evening revealed that it would be acquired by Tilray Brands (TSX: TLRY) in an all-stock transaction.

For US$56.0 million.

The deal will see Hexo shareholders receive 0.4352 shares of Tilray for each share of Hexo currently held, equating to a price of $1.62 per share as of the market close today. Hexo meanwhile closed the day at $2.23, with the sale representing a loss for shareholders based on the current equity price. The price paid is said to represent a price of US$1.25 per share, based on the 60-day volume weighted average price of Hexo on the Nasdaq, a justification shareholders will surely enjoy.

The transaction is said to “build on the successful strategic alliance between the two companies and positions Tilray for continued strong growth and market leadership in Canada.”

“As we began working with Tilray last year, the value that could be achieved through the combination of our businesses in order to compete and drive profitable growth in the highly fragmented Canadian market was immediately clear. With the recent headwinds in the cannabis industry, our Board determined that HEXO shareholders would benefit from being part of Tilray’s diversified business and from the strong plan in place they have to reinforce their industry leadership, continue to strengthen the top and bottom lines, and to drive value creation,” commented Mark Attanasio, Chairman of Hexo.

The transaction remains subject to shareholder and customary approvals. It is currently expected that the transaction will close shortly after the shareholder meeting, which is scheduled for June 22, 2023.

As part of the proposed transaction, Tilray has waived certain debt covenants related to monies owed by Hexo to Tilray. In exchange, Hexo has transferred its real estate properties in Fort Collins, Colorado, worth US$6.0 million to Tilray, and will pay an additional US$1.0 million in cash or via the transfer of certain real estate in Brantford, Ontario. An additional payment of up to US$10.0 million may also be made, for consideration of the termination of the services arrangement between the two entities.

Separately, Tilray this evening reported its third quarter financial results, posting net revenue of $145.6 million, and a gross loss of $11.7 million. Adjusted EBITDA came in at $14.0 million, while the company recorded $1.1 billion in impairments.

Hexo Corp last traded at $2.23 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

A Medical Breakthrough the Market Overlooked | David Elsley – Cardiol Therapeutics

Why Grade Beats Size in Silver Mining | Frank Basa – Nord Precious Metals

Are Investors Missing the Start of the Next Commodity Supercycle? | Morgan Lekstrom – NexMetals

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

Hexo Corp Targets Black Market with $4.49 Per Gram Product

Hexo Corp (TSX: HEXO) (NYSE: HEXO) announced this morning their plan to target the black...

Wednesday, October 16, 2019, 09:24:49 AM

Hexo Corp Announces Prospectus Expiration, Elects To Not Refile

Hexo Corp (TSX: HEXO) (NYSE: HEXO) this morning attempted to flex its muscles when it...

Tuesday, December 22, 2020, 07:30:08 AM

Hexo: Stifel-GMP Puts Bankruptcy On The Table For Company Following Terrible Debt Deal

On October 29th, Hexo Corp (TSX: HEXO) reported its fiscal fourth quarter financial results. The...

Monday, November 8, 2021, 03:58:00 PM

Tilray Sinks 22% In Pre-Market Trading After Lending Shares To Shorts For Note Offering

Tilray Brands (NASDAQ: TLRY) is currently down nearly 23% in pre-market trading follow the after-hours...

Friday, May 26, 2023, 09:01:57 AM

Tilray Posts Q2 Earnings

Tonight after the bell, Tilray (NASDAQ: TLRY) released their second quarter earnings. Which included the...

Tuesday, August 13, 2019, 09:49:48 PM