HEXO Corp. to acquire Zenabis Global for $235M
February 16, 2021 By Grow Opportunity staff
HEXO Corp., an Ottawa-based consumer packaged goods (CPG) cannabis company, has announced that it will be acquiring Zenabis Global Inc.
According to a press release published on Feb. 16, the all-share transaction is estimated to be valued at CA$235 million.
Vancouver-based Zenabis Global is a licensed medical and recreational cannabis producer with three facilities in Atholville, N.B.; Langley, B.C.; and Stellarton, N.S. Together, HEXO acquires two indoor facilities (about 635,000 sq. ft.) and access to a 2.1 million sq. ft. greenhouse facility. The company produces about 111,200 kilograms of cannabis a year.
With this agreement, HEXO also takes advantage of Zenabis’ European foothold. The company’s Atholville facility packages and distributes medical cannabis under European Union Good Manufacturing Practices. Zenabis currently has an exporting and processing joint venture, ZenPharm, in Birżebbuġa, Malta.
“This is a compelling combination,” said Shai Altman, CEO of Zenabis, in a statement. ” Like HEXO, Zenabis believes that the combination should deliver meaningful synergies, a stronger financial position with increased flexibility, and should position the combined company to meet growing consumer demand on a national and international basis.”
The companies say the deal was already unanimously approved by each board of directors, but will require the support of at least 66 per cent of Zenabis shareholders to move forward.
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