June 17, 2022 By The Canadian Press
Ottawa, Ont. headquartered HEXO Corp., leading Canadian licensed producer with facilities in Ont., Que., and N.B., has announced amending agreements to the previous transaction agreement with Tilray Brands, Inc.
Additionally, HEXO has entered into a second amending agreement to the previous equity purchase, or standby agreement with investor KAOS Capital Ltd.
“The strategic partnership with Tilray Brands significantly improves HEXO’s capital structure and provides the opportunity to accelerate our growth in global markets. Challenging stock market conditions have necessitated amendments to the agreement, but this is a critical step in unlocking the shareholder value held within the Company.” — Charlie Bowman, President & CEO of HEXO
A recent meeting of shareholders approved the aforementioned standby agreement with KAOS Capital Ltd. Approximately 16 percent of common shares were represented at the meeting. The company agreed to issue and sell up to $180 million in common shares of the company, approved by approximately 87 percent of the votes cast by shareholders.
The company also released Q3’22 statistics along with impending plans to restructure strategic partnerships and shares in order to streamline operations.
After a net sales decrease of approximately 14 percent, driven by a reduction in sales in the international and adult-use market, the company plans to cut production costs and the subsequent 450 jobs associated, which includes the closure of the Belleville, Ont. facility, set to be complete by the end of July, 2022.
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