An anonymous director of Hexo reports
HEXO CORP.'S SHAREHOLDERS APPROVE NOTE TRANSACTION WITH TILRAY BRANDS
At Hexo Corp.'s reconvened special meeting of shareholders held on July 5, 2022, holders of common shares of Hexo approved the previously announced transaction with Tilray Brands Inc. and HT Investments MA LLC. The meeting was originally held on June 14, 2022, and was adjourned prior to shareholders voting on the note transaction in order to provide shareholders with additional time to consider the previously announced amendments to the note transaction.
At the meeting, shareholders voted in favour of the ordinary resolution to approve certain aspects of the note transaction, which provides for the amendment to the terms of the outstanding senior secured convertible note originally issued by Hexo to HTI and the execution of an amended and restated note with HTI that will be immediately thereafter assigned to Tilray Brands pursuant to the terms of an assignment and assumption agreement. The note amendment resolution was approved by 87.246 per cent of the votes cast by shareholders at the meeting. A total of 80,423,499 common shares (approximately 17.55 per cent of the issued and outstanding common shares) were represented at the meeting.
Shareholder approval is a condition to closing the note transaction. The company previously obtained, on May 13, 2022, conditional approval from the Toronto Stock Exchange for the note transaction and clearance from the Competition Bureau on July 4, 2022. Closing of the note transaction remains subject to the fulfilment of certain other conditions and is expected to occur in the third quarter of 2022.
Hexo is an award-winning licensed producer of innovative products for the global cannabis market. Hexo serves the Canadian recreational market with a brand portfolio, including the Hexo, Redecan, Up Cannabis, Original Stash, 48North, Trail Mix, Bake Sale and Latitude brands, and the medical market in Canada and Israel. The company also serves the Colorado market through its Powered by Hexo strategy and Truss CBD USA, a joint venture with Molson-Coors. With the completion of Hexo's acquisitions of Redecan and 48North, Hexo is a leading cannabis products company in Canada by recreational market share.
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