Tilray Brands Details Definitive Agreement With Hexo Corp. O Tilray Brands Details Definitive Agreement With Hexo Corp. Over Hexo's Senior Secured Convertible Note
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08:11 AM EDT, 04/12/2022 (MT Newswires) -- Tilray Brands, Inc. (TLRY.TO), a global cannabis-lifestyle and consumer packaged goods company, announced Tuesday that it has signed a definitive agreement for a commercial and financial partnership with Hexo Corp. (HEXO.TO). The deal was initially announced on March 3.
Under the terms of the agreement, and subject to the satisfactory completion of certain closing conditions, Tilray will acquire all of the remaining US$193 million outstanding principal balance of the senior secured convertible note that was issued by Hexo and held by funds affiliated with HT Investments MA LLC. The Note will be amended to include conversion rights at a price of C$0.85 per Hexo share, allowing Tilray Brands to acquire a significant equity ownership position in Hexo. HTI may continue to redeem the Note pursuant to its terms; but the outstanding principal balance of the Note, when ultimately purchased by Tilray Brands, will not be less than US$160 million.
Hexo will not receive any proceeds as a result of Tilray Brands' purchase of the Note from HTI.
Both companies have agreed to work together to finalize and enter into commercial agreements at closing of the transaction.