LEAMINGTON, Ont. — Tilray Brands Inc. says it is buying fellow cannabis company Hexo Corp. in an all-share deal valued at US$56 million.
It says it will issue 0.4352 shares of Tilray stock for each outstanding Hexo share in the deal structured as a merger that requires both shareholder and court approval.
Tilray chief executive Irwin Simon says in a statement that along with its acquisition of Montauk Brewing Co. in November, the Hexo deal will help as it builds a leading, diversified cannabis lifestyle company.
Hexo chairman Mark Attanasio says in a statement that given headwinds in the cannabis industry, the company’s board thought shareholders would benefit by 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 ending Feb. 28, compared with a net income of US$52.5 million for the same quarter last year.
Net revenue came in at US$145.6 million for its third quarter compared with US$151.9 million for the same quarter last year.