HEXO Equities Warrants Exp 2 Apr 2024 T.HEXO.W.A

TILRAY / HEXO Merger - Share Ratio Clarification

[quinlash]

Seeing some confusion on the forum as to how HEXO shares will convert to Tilray (if / when voted through by Shareholders).  Shares will convert to Tilray at a ratio of .4352 meaning you will need to take your current sharecount, multiple it by .4352 to get your new sharecount in Tilray shares.

Trading price will fluxuate as per how the market prices the shares day over day with the implied value number stated in the Press Release being relative to the price of shares at the time the Press Release was made public.

When in doubt be sure to refer to the HEXO Corp Homepage for details or contact their Investor Relations Group.

---- Taken From HEXO Corp Press Release ----

GATINEAU, Qubec--(BUSINESS WIRE)--HEXO Corp. (TSX: HEXO; NASDAQ: HEXO) (“HEXO” or the “Company”) announces that it has entered into a definitive arrangement agreement (the “Arrangement Agreement”) with Tilray Brands, Inc. (“Tilray”) for a transaction whereby Tilray will acquire all of the issued and outstanding common shares of the Company (the “HEXO Shares”), subject to approval by the holders of HEXO Shares (“HEXO Shareholders”) and the satisfaction or waiver of other closing conditions (the “Arrangement”). Under the terms of the Arrangement Agreement, HEXO Shareholders will receive 0.4352 of a share of Tilray common stock (“Tilray Shares”) in exchange for each HEXO Share held (the “Exchange Ratio”), which implies a purchase price of US$1.25 per HEXO Share based on the volume weighted average price of Tilray Shares on the Nasdaq Stock Market (“Nasdaq”) for the 60-day period ended on April 5, 2023. Warrants and other convertible securities of HEXO will be adjusted in accordance with their terms such that the holders thereof will be entitled to receive, upon exercise or vesting thereof, Tilray Shares, after adjustments to reflect the Arrangement and account for the Exchange Ratio.


LINK TO OFFICAL HEXO PRESS RELEASE

https://www.businesswire.com/news/home/20230410005360/en/HEXO-Corp.-Announces-Acquisition-by-Tilray-Brands

[Skater]

So if each Hexo share is worth .4352 of a Tilray share, and a Tilray share is currently worth $3.30, then a Hexo shareholder will get .4352 x 3.30 = $1.44 for each Hexo share, would you agree?  And if thats the case, why does the market think the hexo shares are worth $1.58-1.59?  anticipating a higher bid?  Expecting Tilray to increase their offer?  Or just priced wrong?

[momocau]

No you have to take the number of shares you have and multiply it by 0.4352 and that gives you the number of shares that TLRY is going to give you in June. Ex= I have 4000 shares of HEXO I multiply by 0.4352 its gives 1740 shares of TRY. GOOD DAY.

[Skater]

So your 4,000 shares of Hexo today valued at $1.58 = $6,320, will be exchanged for 1,740 shares of Tilray valued at $3.28 today = $5,707.  Check your math momo, your're better off to sell your Hexo shares (today) than wait for the Tilray shares....Hexo share value should trade in sync with Tilray share value, unless you think they are going to increase their offer.  I personally don&

[Keeler]

Except it's not what Hexo's shares are valued at today - the $1.58 you posted, compared to Tilray's price today. It's what each investor paid for his Hexo shares - the longs for example have stated that they have average costs of $10 or more for each Hexo share. So it's their actual cost - 4,000 x $10 = $40,000, compared to the $3.28 x 4000 = $5,707. And no Tilray will NOT