Tilray Brands looking to buy Hexo , THE TIMING IS PERFECT
FP/wire say Tilray Brands looking to buy Hexo
2023-04-12 06:43 PT - In the News
See In the News (C-TLRY) Tilray Brands Inc
The Financial Post reports in its Wednesday, April 12, edition that Hexo shares tumbled on Tuesday after Tilray Brands announced plans to buy company in an all-share deal worth about $56-million, with an offer price less than the stock's market value prior to the announcement (all figures U.S.). A Bloomberg dispatch to the Post reports that Tilray's implied purchase price in its so-called take-under deal is $1.25 per share, less than Hexo's Monday closing price of $1.64. On Tuesday, Hexo plunged as much as 28 per cent to $1.18 -- paring Monday's 30 per cent rally, which was triggered by a media report implying that Tilray would buy the company for $75-million. Jefferies analyst Owen Bennett said in a note, "The deal is at a discount and with room for material upside on value creation." Tilray had previously bought $173-million in Hexo's debt at a discount, which analysts had said could push the two companies together. Hexo once had a joint venture with Molson Coors to produce CBD drinks, but the companies parted ways. It also announced a deal last September to produce products for Tyson 2.0, a cannabis company co-founded by Mike Tyson.
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