Read the tlry PR from todayMuch more positive sounding than Hexo PR because they know they have hexo over a barrel and going to snap this up for astral compared to what they were offering last November. Irwin Simon happier than a pig in s###. Tilray Brands Announces Enhancements to Accretive Strategic Transaction with HEXO June 14, 2022 08:00 ET | Source: Tilray Brands, Inc. Amended Terms Include Increased Discount on Purchase Price of HEXO Note and Reduced Tilray Conversion Price on HEXO Shares Reaffirms $80 Million in Projected Shared Cost-Saving Synergies Expected to Close in July 2022 LEAMINGTON, Ontario, June 14, 2022 (GLOBE NEWSWIRE) -- Tilray Brands, Inc. (Tilray Brands or the Company) (Nasdaq | TSX: TLRY) today announced that the Company has entered into amendments to improve the terms of its previously-disclosed agreements to acquire all of the outstanding principal, plus accrued and unpaid interest, under a secured convertible note (the HEXO Note) issued by HEXO Corp. (HEXO) to HT Investments MA LLC (HTI). These amendments provide for, among other things, an additional discount to Tilray Brands purchase price as well as the reduction of the conversion price under the HEXO Note from CAD$0.85 to CAD$0.40 per share. Irwin D. Simon, Tilray Brands Chairman and CEO, said, We believe HEXO continues to be the right strategic partner for Tilray Brands in Canada and, therefore, look forward to closing this transaction in July and working with HEXO to deliver on the promise and the potential of this partnership for our shareholders, consumers, and employees. Charlie Bowman, HEXOs President and CEO, added, The strategic alliance with Tilray Brands accelerates HEXOs operational turnaround and unlocks capital to expand our market leadership globally. The partnership is an essential next step in improving our capital structure, and were confident that the synergies realized will reset the industry. As previously announced, the strategic alliance between Tilray Brands and HEXO is expected to provide several financial and commercial benefits, including: Substantial Synergies: the strategic alliance between Tilray Brands and HEXO is expected to deliver up to $80 million of shared cost-saving synergies within two years of the completion of the Transaction. Both companies have already begun working on evaluating operations and production efficiencies with respect to cultivation and processing services, including pre-rolls, beverages and edibles, as well as shared services and procurement. In conjunction with the sharing of synergies, HEXO will pay Tilray Brands an annual fee of $18 million for advisory services with respect to cultivation, operation, and production matters. Accretion: as a result of the substantial synergies, the acquisition of the HEXO Note by Tilray Brands will be immediately accretive to the Company. Strengthening Product Innovation in Canada and International Markets: Tilray Brands and HEXO will bring together industry leading expertise in the global cannabis industry, including cannabis cultivation, product innovation, brand building, and distribution. Leveraging both companies commitment to innovation and operational efficiencies, both companies will share their respective expertise and know-how to strengthen market positioning and capitalize on opportunities for growth through a broadened product offering and accelerated CPG innovation. Upon closing, Tilray Brands will nominate two directors to HEXOs Board of Directors (Board) and one Board observer. Amended Transaction Details Under the terms of the amended agreements, and subject to the satisfaction of specific closing conditions, Tilray Brands would acquire the HEXO Note from HTI, which includes 100% of the current remaining $185 million outstanding principal balance of the HEXO Note, plus any accrued and unpaid interest thereon. As consideration for Tilray Brands acquisition of the HEXO Note, Tilray Brands will pay 89.2% of the then outstanding principal balance for the HEXO Note (the Purchase Price). This equates to a 10.8% discount on the outstanding principal amount. Until closing, HTI may continue to redeem the HEXO Note pursuant to their terms; however, in no event shall the outstanding principal balance of the HEXO Note, when ultimately purchased by Tilray Brands, be less than $160 million. The initial conversion price of the HEXO Note will be amended and adjusted down from CAD$0.85 to CAD$0.40 per share (the Conversion Price). This implies that, as of June 13, 2022, Tilray Brands would have the right to convert into approximately 50% of the outstanding common stock of HEXO (on a non-diluted basis). The Purchase Price shall be satisfied, in part, by the issuance to HTI of a $50 million convertible unsecured note (the Tilray Convertible Note) and the balance in either cash or Class 2 common stock of Tilray Brands or any combination thereof, at Tilray Brands option. The Tilray Convertible Note will bear interest at a rate of 4.00% per annum, calculated and paid on a quarterly basis and maturing on September 1, 2023. HEXO will not receive any proceeds as a result of Tilray Brands proposed purchase of the HEXO Note from HTI. The parties expect to close on or about July 15, 2022, and the amended agreements also extend the outside date for closing the transactions to August 1, 2022.