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Cannabis company Tilray to buy rival Hexo in all-share deal

Proposed merger comes as Tilray reported a net loss of US$1.2M for its latest financial quarter
Tilray's product line such as capsules, oils, and dried marijuana is shown at the company's head office in Nanaimo, B.C., on Thursday, November 29, 2017. THE CANADIAN PRESS/Chad Hipolito

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.

This report by The Canadian Press was first published April 10, 2023.

Companies in this story: (TSX:TLRY; TSX: HEXO)

The Canadian Press

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