Canaccord Genuity Acts as Exclusive Financial Advisor to Tilray Brands on its US$226 Million Acquisition of HEXO.
Canaccord Genuity is pleased to announce that on April 10, 2023, its client, Tilray Brands, Inc. (“Tilray Brands” or the “Company”) (Nasdaq | TSX: TLRY), announced that it entered into a definitive arrangement agreement (the “Arrangement Agreement”) whereby Tilray will acquire all of the issued and outstanding common shares of HEXO Corp. (“HEXO”) (Nasdaq | TSX: HEXO). Under the terms of the Arrangement Agreement, HEXO shareholders will receive 0.4352 of a share of Tilray common stock (“Tilray Shares”) in exchange for each HEXO share held (the “Exchange Ratio”), which implies a purchase price of US$1.25 per HEXO share based on the volume weighted average price of Tilray Shares for the 60-day period ended on April 5, 2023.
The acquisition builds on the strategic alliance between the two companies and is expected to position Tilray for continued strong growth and market leadership in Canada, the largest federally legal cannabis market in the world. The completion of the transaction is subject to customary and negotiated closing conditions, including HEXO shareholder approval and court approval, and is expected to close in June 2023.
Tilray Brands is a leading global cannabis-lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America. A pioneer in cannabis research, cultivation, and distribution, Tilray Brands’ unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.
HEXO is an award-winning licensed producer of premium products for the global cannabis market. HEXO delivers a thoughtfully curated portfolio of both recreational and therapeutic cannabis products that inspire customer loyalty. HEXO’s brands include HEXO, Redecan, Original Stash, Bake Sale and T 2.0, as well as medical cannabis products. HEXO’s world-class Canadian grow sites are unmatched in size, technological advantage and yield of high-quality cannabis, driving innovation through every step of the process.
The Canaccord Genuity team included Dan Daviau, Jamie Nagy, Mark Silvestre, Kevin Romano, and Matthias Eyford from Investment Banking.