Keeler wrote: Tilray took over $200 million of existing debt - the obligation was simply transferred from High Trail to Tilray.
Tilray will:
- receive $20 million in principal and interest payments
- receive $25 million in 'advisory fees'
- require Hexo to buy all cannabis from Tilray for any international sales Hexo might obtain
The $200 million could represent about 35% ownership of Hexo, valuing Hexo at around $600 million total - after Hexo spent $1.5 billion in acquisitions.
Did Tilray throw Hexo a lifeline - yes, Hexo defaulted on their High Trail note and I guess High Trail could have foreclosed and taken over the facilities (if they wanted unused, vacant, idle cannabis facilities in over supplied Canada) - BUT Tilray is hardly doing charity work.
Tilray, like others, will milk Hexo for everything it can - bleed it dry for profit and then buy it for pennies on the dollar.
U.S. legailzation will benefit Tilray - it won't do much for Hexo
HaulJockey - (4/13/2022 3:05:22 PM) Tilry saved Hexo
And shorters of the stock are upset about it. Think about it, Hexo, while a good company, has had some issues, but with cannabis laws changing any time now, Hexo is set to rebound given the chance.
Tilray has given Hexo that chance. Shorters are crying the blues and trying very hard to knock it down. NOT GOING TO HAPPEN.