HEXO Corp. - CEO, Sebastien St-Louis
CEO, Sebastien St
Source: The Cannabis Stock
  • HEXO has acquired all of the issued and outstanding common shares of Zenabis
  • Each former Zenabis shareholder will receive 0.01772 of a common share in the capital of HEXO for each Zenabis share
  • Zenabis Shares will be de-listed from the Toronto Stock Exchange as of the close of trading on June 2
  • Prior to the completion of the arrangement, each of the directors of the boards of directors of Zenabis and its subsidiaries resigned
  • HEXO is a licensed cannabis producer serving the Canadian recreational market
  • Zenabis is a Canadian-licensed cultivator of medical and recreational cannabis
  • HEXO Corp. opened trading at C$8.61 per share

HEXO has acquired all of the issued and outstanding common shares of Zenabis.

“Today is another great day for HEXO,” said HEXO CEO and co-founder Sebastien St-Louis.

“With the acquisition of Zenabis, we are actively positioning HEXO for future expansion in Canada, Europe and beyond. This deal will strengthen our domestic brands, offer a foothold in Europe and provide significant accretive synergies as we continue towards our goal of becoming EPS positive and a top-three global cannabis products company.”

Each former Zenabis shareholder will receive 0.01772 of a common share in the capital of HEXO for each Zenabis share.

Zenabis Shares will be de-listed from the Toronto Stock Exchange as of the close of trading on or about June 2, 2021.

Registered Zenabis shareholders will be required to deposit their share certificate together with a duly completed letter of transmittal, with TSX Trust Company. Shareholders whose Zenabis Shares are registered in the name of a broker, dealer, bank, trust company or another nominee.

Listed Zenabis Warrants will continue trading on the TSX, but will commence trading under the symbol ‘HEXO.WT’ as of June 3, 2021. The listed Zenabis Warrants will remain listed on the TSX until the earliest to occur of their exercise, expiry or de-listing. HEXO has entered into a supplemental warrant indenture in respect of the Listed Zenabis Warrants.

Holders of Zenabis options have received replacement options exercisable for HEXO Shares at the same conversion ratio applicable to the Zenabis shares. All other terms and conditions of the replacement options, including the term of expiry, vesting, conditions to and manner of exercising, are the same as the Zenabis options for which they were exchanged.

Holders of Zenabis deferred share units or restricted share units have received replacement deferred share units or restricted share units, exercisable for HEXO Shares at the same conversion ratio applicable to the Zenabis shares. All other terms and conditions of the replacement deferred share units and restricted share units, including the term of expiry, vesting, conditions to and manner of exercising, are the same as the Zenabis deferred share units or restricted share units for which they were exchanged.

Prior to the completion of the arrangement, each of the directors of the boards of directors of Zenabis and its subsidiaries resigned.

HEXO is a licensed cannabis producer. HEXO serves the Canadian recreational market with a brand portfolio including HEXO, UP Cannabis, Original Stash, Bake Sale, Namaste, and REUP brands, and the medical market in Canada, Israel and Malta.

HEXO also serves the Colorado market through its Powered by HEXO® strategy and Truss CBD USA, a joint venture with Molson Coors (NYSE: TAP).

Zenabis is a Canadian-licensed cultivator of medical and recreational cannabis. 

HEXO Corp. opened trading at C$8.61 per share.

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