LEAMINGTON, Ont. –
Tilray Brands Inc. says fellow cannabis company Hexo Corp. buys in an all-share deal worth US$56 million.
It says it will issue 0.4352 shares of Tilray for each Hexo share outstanding in the deal structured as a merger that requires both shareholder and court approval.
Tilray CEO Irwin Simon says in a statement that the Hexo deal, along with the acquisition of Montauk Brewing Co. in November, will help build a leading diversified cannabis lifestyle company.
Hexo chairman Mark Attanasio says in a statement that given the headwinds in the cannabis industry, the company’s board of directors believed shareholders would benefit from being part of Tilray’s diversified business.
The proposed merger comes as Tilray reported a net loss of US$1.2 million for the quarter ended February 28, compared to a net profit of US$52.5 million for the same quarter last year.
Net sales were $145.6 million for the third quarter compared to $151.9 million for the same quarter last year.
This report from The Canadian Press was first published on April 10, 2023.