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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
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Tilray's product line such as capsules, oils, and dried marijuana is shown at the company's head office in Nanaimo, sa国际传媒, 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