HEXO Enters Into Definitive Agreement With Tilray Brands to Create a Strategic Alliance Between Two Canadian Cannabis Leaders

HEXO Enters Into Definitive Agreement With Tilray Brands to Create a Strategic Alliance Between Two Canadian Cannabis Leaders
Cannabtimes

<![CDATA[GATINEAU, Quebec, April 12, 2022 (GLOBE NEWSWIRE) — PRESS RELEASE — HEXO Corp., a producer of high-quality cannabis products, has announced that the company has taken a significant step forward in executing on its strategic plan–The Path Forward–by entering into definitive agreements with Tilray Brands, Inc., as well as entering into a definitive equity purchase agreement with an affiliate of KAOS Capital Inc., further to the company’s press release of March 3, 2022. Closing of the transaction with Tilray Brands and the Standby Agreement is expected to occur by the end of May 2022, subject to the satisfaction or waiver of closing conditions.The definitive agreements with Tilray Brands solidify the strategic partnership between HEXO and Tilray Brands and, on closing, will provide HEXO with a recapitalized balance sheet and the enhanced financial flexibility critical to accelerating its transformation into a cash flow positive business within the next four quarters. The terms of the transaction are set out in a transaction agreement entered into among HEXO, Tilray Brands and HT Investments MA LLC (HTI) providing for the amendment to the terms of the outstanding senior secured convertible note originally issued by HEXO to HTI and the execution of an amended and restated Note with HTI that will be immediately thereafter assigned to Tilray Brands pursuant to the terms of an assignment and assumption agreement.  HEXO and Tilray Brands have also committed to work together to evaluate cost saving synergies as well as other production efficiencies and to set out the terms of such arrangements in certain commercial agreements to be entered into upon the closing of the transaction. The Commercial Agreements are expected to create significant efficiencies, with a target combined cost savings of up to U.S.$80 million within two years to be shared equally between the two companies.“Since I arrived, HEXO’s…

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Source : HEXO Enters Into Definitive Agreement With Tilray Brands to Create a Strategic Alliance Between Two Canadian Cannabis Leaders

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