Canada’s cannabis market saw another flashy acquisition get confirmed this week as HEXO (NYSE:HEXO,TSX:HEXO) agreed to buy Zenabis Global (TSX:ZENA) in a C$235 million all-share deal.

Additionally, a cannabis retail operator announced its intention to list its shares on the NASDAQ.

Keep reading to find out more cannabis highlights from the past five days.


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Two Canadian producers join forces

The deal between Quebec-based HEXO and Zenabis represents another union between previous competitors, and is a sign of consolidation in the Canadian cannabis sector.

“We are proceeding with this transaction because we believe it should be accretive for our shareholders, and it also positions HEXO for accelerated domestic and international growth while supporting near-term requirements for additional licensed capacity,” said Sebastien St-Louis, CEO and co-founder of HEXO.

As part of the deal, Zenabis shareholders will get 0.01772 of a HEXO share per each Zenabis share.

The news this week from HEXO and Zenabis comes on the heels of the recent blockbuster combination between Tilray (NASDAQ:TLRY) and Aphria (NASDAQ:APHA,TSX:APHA). As mentioned, it’s part of a theme of more and more Canadian cannabis companies banding together.

Shai Altman, CEO of Zenabis, said the arrangement will benefit Zenabis and will pair the two companies on a path for international expansion. The deal comes after Zenabis confirmed in early January that it was investigating strategic alternatives to better serve investors.

Retailer on the rise after announcing NASDAQ listing

Shares of Fire & Flower Holdings (TSX:FAF,OTCQX:FFLWF) rose this past week after the retail operator confirmed its application to list on the NASDAQ.

“This application to list on Nasdaq is a major step forward in expanding our shareholder base in the United States,” Fire & Flower CEO Trevor Fencott said in a statement to investors.

The company reaffirmed its intention to continue expanding in the Canadian market, while also pursuing “international opportunities for accelerated growth in the years ahead.”


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In its announcement, the company said it hopes the US-based listing will help it reach a deeper pool of both retail and institutional investors looking for cannabis opportunities.

No timeline has yet been revealed for Fire & Flower’s NASDAQ listing. The company said it will retain its Toronto Stock Exchange listing as well.

Cannabis company news

  • Neptune Wellness Solutions (NASDAQ:NEPT,TSX:NEPT) issued a financial report for its third fiscal quarter of 2021. The company reported a net loss of C$73,799, blaming it partially on impairment charges and an accelerated amortization charge for a previous acquisition.
  • Halo Collective (NEO:HALO,OTCQX:HCANF) added imported cannabis products to its lineup in the UK through its subsidiary Canmart. “We are pleased that Canmart has already been fulfilling medical prescriptions for patients as well as increasing awareness with educational programs for UK patients and physicians,” said Kiran Sidhu, CEO and co-founder of Halo Collective.
  • Sundial Growers (NASDAQ:SNDL) confirmed a strategic investment agreement in Indiva (TSXV:NDVA,OTCQX:NDVAF) worth C$22 million, set to be completed by way of a brokered private placement. The investment funds will be used to end the company’s debt and establish a partnership between the two cannabis players.
  • TerrAscend (CSE:TER,OTCQX:TRSSF) released its preliminary results for Q4 2020 and the full 2020 year. The company is expected to report strong Q4 sales, resulting in full-year sales worth C$198 million. It also still expects to hit its 2021 net sales target of C$360 million to C$380 million.

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.


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Matica Enterprises Inc. (CSE: MMJ) (FSE: 39N) (OTCQB: MMJFF) (“Matica” or the “Company”) is pleased to announce that, in connection with the previously announced share consolidation on a thirty (30) for one (1) basis (the “Consolidation”), the Company will be changing its name to West Island Brands Inc. (the “Name Change”).

The common shares are scheduled to begin trading on a post-consolidation basis at market open on October 20, 2021 under the stock symbol “WIB”. The new CUSIP number will be 953400108 and the new ISIN number will be CA9534001081. Following the Consolidation, the Company will have approximately 10,712,484 common shares issued and outstanding.

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The Psychedelic Capital: October Conference is set to be a virtual event, covering the most innovative and cutting-edge companies, latest IPOs, newest opportunities and deepest insights into the global psychedelic industry. From exploring ongoing governmental policy shifts to commercial product breakthroughs, the conference will serve to educate attendees on the potential uses and benefits attached to psychedelics in today’s environment.

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Matica Enterprises Inc. (CSE: MMJ) (FSE: 39N) (OTCQB: MMJFF) (“Matica” or the “Company”) is pleased to announce that, pursuant to a director’s resolution, the Company will be consolidating its issued and outstanding share capital on the basis of every thirty (30) old Common Shares being consolidated into one (1) new Common Share (the “Share Consolidation”). Any fractional shares remaining after giving effect to the Share Consolidation will be cancelled.

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