Tilray to buy $211 million of Hexo debt

Tilray is set to acquire approximately US$211 million of Hexo's debt. Hexo had earlier announced some initiatives to decrease their amount of debt, which is allegedly at around CA$402 million, such as cutting 180 jobs, and closing facilities. This new agreement would bring together Canada's top two cannabis market share leaders.

Irwin D. Simon, Tilray Brands’ Chairman and CEO, said, “We believe this proposed transaction would be a win-win for Tilray Brands and HEXO as it would launch a strategic partnership between two leading Canadian cannabis producers with complementary brand portfolios. For us, it provides a path for meaningful future equity ownership of HEXO, and enables us to participate in HEXO’s share price appreciation as it continues to execute on its growth initiatives. We also expect to realize further commercial and production efficiency savings of up to C$50 million within two years, which would be shared equally and would allow us to continue being the leading, low-cost Canadian producer. I look forward to working with HEXO’s management team and Board to create additional brand and shareholder value.”