M&A in the Canadian cannabis scene continues to sizzle. Now a big-name producer will be acquiring a premium product company.
The cannabis sector continues to see new mergers and acquisitions in the Canadian landscape.
Meanwhile, Martha Stewart is adding more to her plate when it comes to the cannabis industry by expanding her working relationship with Canopy Growth (NASDAQ:CGC,TSX:WEED).
Keep reading to find out more cannabis highlights from the past five days.
Producer buys boutique cannabis company
The deal is set to cost HEXO approximately C$50 million through an all-share arrangement.
“We expect the deal could offer up to $12 million worth of accretive synergies within one year following the close and ideally position HEXO to continue executing on our domestic and international growth strategy,” Sebastien St-Louis, CEO and co-founder of HEXO, said in a statement.
All 48North holders will receive 0.02366 of a HEXO common share per each 48North share held.
“Like HEXO, 48North believes that the combination should deliver meaningful synergies, a stronger financial position with increased flexibility, and should position the combined company to meet growing consumer demand on a national basis,” 48North CEO Charles Vennat said.
Martha Stewart becomes official strategic advisor
Back in 2019, Canopy Growth announced that Stewart, an iconic celebrity and television personality, would join the company’s ranks as a brand ambassador for its product development pipeline in the US.
Under the original partnership, Stewart worked only with hemp-derived CBD items. Now she will step in as official strategic advisor for Canopy Growth to help with product development and branding.
“Deepening my relationship with the business is a natural fit given our aligned dedication and passion for bringing consumers innovative and quality CBD products and I’m thrilled to share the benefits of CBD with consumers all over the country,” Stewart said.
Since first kicking off her relationship with Canopy Growth, Stewart has expanded her knowledge of CBD products and needs, given that interest for these items is only increasing among US consumers.
“With her expansive business acumen and years of experience with the Canopy team, together we’ll unleash the power of CBD to improve lives and create an unparalleled portfolio of brands,” David Klein, CEO of Canopy Growth, commented.
Cannabis company news
- Halo Collective (NEO:HALO,OTCQX:HCANF)issued its financial and operational results for the Q1 period. The firm reported a net loss of US$9.1 million despite a revenue uptick of 123 percent from the same period a year ago. CFO and Co-founder Philip van den Berg said the company’s results show it’s still on target for the 2021 guidance it previously issued.
- Aurora Cannabis (NYSE:ACB,TSX:ACB)announced its subsidiary Aurora Germany has extended its working relationship with biopharmaceutical company Grow Group by two years.
- High Tide (TSXV:HITI,OTCQB:HITIF)upsized its new public offering deal to C$20.2 million. In total, the firm will offer an aggregate of 2.1 million units at a price of C$9.60 each.
- RIV Capital (TSX:RIV,OTC Pink:CNPOF)confirmed that PharmHouse has sold a greenhouse facility in connection with a plan to reduce what is owed in its syndicated credit facility with an undisclosed Canadian bank lender.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.