Tilray is to take up Hexo's remaining debt of US$193 million. This move came after last month's announcement by Tilray, which was set to acquire up to $211 million of Hexo's debt. As stated by the companies, this agreement brings together two of Canada's biggest cannabis LPs, which they expect to yield increased productivity and other efficiencies amid intensely-competitive market dynamics.
By doing so, Tilray gets the right to gain a significant equity stake in Hexo.
Irwin D. Simon, Tilray Brands’ Chairman and CEO said, “We believe the timing is right given Hexo’s progress executing its operational turnaround plan that could deliver tangible value to Tilray. We look forward to working with HEXO to deliver on the promise and the potential of this partnership for our shareholders, consumers, and employees.”
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