Shareholders of cannabis firm Hexo approve Tilray takeover

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Shareholders of Canadian cannabis producer Hexo Corp. approved Tilray’s court-accepted plan to acquire all the issued and outstanding common shares of the Quebec company.

The vote occurred Thursday at a special meeting of common shareholders, Ottawa-based Hexo said.

Hexo, headquartered in Gatineau, said its common shareholders will receive 0.4352 of a share of Tilray common stock for each whole common share held.

The arrangement was approved by roughly 93.7% of all votes cast.

In April, Tilray entered into a definitive agreement to acquire Hexo for an aggregate purchase price of approximately $56 million (74 million Canadian dollars).

New York-headquartered Tilray said it planned to finance the deal by issuing 0.4352 of its common stock for each outstanding Hexo share.

The two businesses entered a strategic alliance last year.

At the time, Tilray said it planned to purchase $193 million (CA$243.3 million) of Hexo senior secured convertible notes with the right to convert them to Hexo shares at CA$0.85 per share.

That gave Tilray a roughly 35% stake in Hexo, according to a Tilray news release.

Completion of the final arrangement between Hexo and Tilray remains subject to approval of the Ontario Superior Court of Justice.

Hexo said it anticipates returning to the court on June 19 to seek the court’s approval.

Tilray’s shares trade as TLRY on the Nasdaq and Toronto Stock Exchange.

Hexo’s shares are traded as HEXO on the Nasdaq and Toronto Stock Exchange.