Tilray Brands, Inc. (NASDAQ:TLRY) confirmed Tuesday it has signed a definitive agreement for a commercial and financial partnership with HEXO Corp. (NASDAQ:HEXO).
As initially announced on March 3, 2022, the partnership will bring together Canada’s top two cannabis market leaders. Under the terms of the agreement, and subject to the satisfactory completion of certain closing conditions, Tilray Brands will acquire 100% of the remaining US$193 million outstanding principal balance of the senior secured convertible note that was issued by HEXO and held by funds affiliated with HT Investments MA LLC . The note will be amended to include conversion rights at a price of C$0.85 per HEXO Share, which would allow Tilray Brands to acquire a significant equity ownership position in HEXO and participate directly in its considerable growth opportunities.
Irwin D. Simon, Tilray Brands’ chairman and CEO, said, “We know that winning in Canada means a relentless focus on product innovation and operational excellence. The agreement with HEXO delivers on both fronts as it facilitates collaboration, the sharing of best-practices, and yields quantifiable operating efficiencies between two companies with unparalleled global cannabis expertise. In addition, we believe the timing is right given HEXO’s progress executing its operational turnaround plan that could deliver tangible value to Tilray Brands shareholders upon equity conversion of our investment. We look forward to working with HEXO to deliver on the promise and the potential of this partnership for our shareholders, consumers, and employees.”
HEXO will not receive any proceeds as a result of Tilray Brands’ purchase of the Note from HTI.
Irwin Simon, Tilray Brands’ chairman and CEO, will be one of the speakers at the Benzinga Cannabis Capital Conference in Miami. There’s still time to sign up for the event that will host many top names in the cannabis industry. Click here for more info.
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