HEXO is opening the bag again to make another splashy acquisition in the Canadian cannabis marketplace. This time it plans to buy Redecan.
Canadian cannabis producer HEXO (NYSE:HEXO,TSX:HEXO) showed this week that it isn’t done making purchases, revealing another acquisition.
Also this week, a cannabis retailer broke ground by confirming its shares will be heading to a senior exchange in the US.
Keep reading to find out more cannabis highlights from the past five days.
HEXO moves ahead with purchasing plans
HEXO announced plans to buy Canadian private cannabis producer Redecan for $925 million, split into $400 million in cash and $525 million paid in HEXO shares. As part of the transaction, HEXO was required to complete a private offering with an “institutional purchaser and certain of its affiliates or related funds” for US$360 million. This was done to complete the cash portion of the acquisition agreement.
“With the addition of Redecan, we intend to leverage our combined expertise in product development, manufacturing and branding in Canada,” said Sebastien St-Louis, HEXO CEO and co-founder.
The company said this acquisition will give the new company the top position for market share in Canadian recreational cannabis.
“We will also be able to provide consumers across Canada with a diverse and innovative range of high-quality products, with an enhanced brand offering that will enable us to better compete against other LPs in Canada, while positioning the company for future expansion in the United States,” St-Louis said.
Hexo's M&A spree this year, so far, includes:
—$235 million for Zenabis Global
—$50 million for 48North Cannabis
—$925 million for Redecan
—US$6 million (+ retrofit) for Colorado production facility
— Matt Lamers (@matt_lamers) May 28, 2021
Canadian retailer headed to the NASDAQ
Calgary-based retailer High Tide (TSXV:HITI,OTCQB:HITID) confirmed it has received approval from exchange regulators to begin listing its shares on the NASDAQ, meaning another Canadian cannabis company can now reach a US investor audience directly.
Raj Grover, president and CEO of High Tide, thanked shareholders through the process and said this event marks a new start for the company.
“This listing makes our shares more accessible to a larger audience of both retail and institutional investors and enhances our ability to pursue larger M&A (merger and acquisition) targets,” Grover said.
Shares of High Tide will begin trading on the NASDAQ on June 2, the firm told shareholders.
Cannabis company news
- Planet 13 Holdings (CSE:PLTH,OTCQB:PLNHF) released its financial statement for Q1. The company credited an increase in Nevada tourism for helping boost its finances. “After a year of fighting against the largest possible macro storm, it feels great to have the wind at our backs and to see all the improvements we put in place start to pay off,” Larry Scheffler, co-CEO of Planet 13, said.
- Tetra Bio-Pharma (TSX:TBP,OTCQB:TBPMF)announced the entry of its first patient into a REBORN1 clinical trial exploring a drug formulation of THC and CBD.
- Nova Cannabis (TSXV:NOVC)told investors its shares have been added to the Cannabis ETF (NYSE:THCX). Darren Karasiuk, CEO of Nova, said the inclusion shows a “strong validation of our business strategy and unique, focused position within the retail cannabis landscape.”
- Halo Collective (NEO:HALO,OTCQB:HCANF)confirmed its warrants started trading on the NEO Exchange this past Thursday (May 28). Just over 65 million warrants are issued and outstanding, according to the company.
- The Valens Company (TSX:VLNS,OTCQX:VLNCF)issued the results of its most recent annual and special meeting of shareholders, confirming its newest board of directors.
Don’t forget to follow us @INN_Cannabis for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.