This week in weed: Trash, diversity and a million-dollar deal

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It was a busy week on the cannabis front with everything from mergers and acquisitions activity to capitalizing on meaningful synergies by trying to disrupt the status quo on weed-related waste. Retail 2021: This will bring Canadian cannabis consumers back to brick-and-mortar The most Canadian-sounding company ever closes financing to complete build-out of huge hemp processing facility Canadian companies pushing the cannabis envelope Deal of the week HEXO Corporation and Zenabis Global Inc. have entered into a definitive agreement that, as proposed, would see the former acquire all of the latter’s issued and outstanding common shares. Valued at $235 million, the all-share transaction means Zenabis shareholders will receive 0.01772 of a HEXO common share in exchange for each company common share held, notes a joint statement from the two companies . If recent financial results are any indication, “the combined organization would be a top-three licensed producer in terms of combined Canadian recreational cannabis sales,” the statement notes. HEXO would further benefit by securing a foothold in the European medical cannabis market via Zenabis’ local partner there, as well as gain access to “licensed capacity to produce approximately 111,200 kilograms of additional high-quality cannabis annually,” the company reports. That access “provides a platform for growth and foundation from which to strengthen and diversify our portfolio of brands,” HEXO notes. “HEXO’s growth strategy includes expanding our global presence, and this acquisition is an important step in that direction,” says Sebastien St.-Louis, CEO and co-founder of HEXO, a consumer-packaged goods cannabis company. The Zenabis BoD has unanimously recommended moving forward, but shareholders still need to okay the intended transaction, voting at least two-thirds in favour of such a move. The proposed deal also needs certain regulatory, court and stock exchange approvals. Cannabis profits continue to rise Ongoing concerns and restrictions related to…

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