RE:RE:RE:Another offer?!?the $6 million penalty is only for cancelling the offer under certain cercumstances. It would not apply to Zenabis's '
right of Zenabis to accept a superior proposal in certain circumstances' as it is specifically allowed in the contract with Hexo having 5 business days to meet the superior offer ...they don't need to beat just meet it. The would be no penalties if Zena had one of these offers that meets the '
certain cicumstances' clause but then Hexo would likely just match the offer and the deal would stay with Hexo is my guess.
The Transaction will require approval by at least 66 2/3% of the votes cast by the shareholders of Zenabis present at a special meeting of Zenabis shareholders. HEXO has entered into voting support agreements with Zenabis’ directors and officers with respect to all Zenabis shares owned by them.
The Arrangement Agreement includes customary provisions, including non-solicitation provisions, subject to the right of Zenabis to accept a superior proposal in certain circumstances, with HEXO having a period of five business days to exercise a right to match any such superior proposal for Zenabis. The Arrangement Agreement also provides for a termination fee of $6.0 million payable by Zenabis to HEXO if the Transaction is terminated in certain specified circumstances, as well as reciprocal expense reimbursement fees if the Transaction is terminated by either party in certain other specified circumstances.