Hexo and Newstrike Get Deal Approval from Competition Bureau
Hexo and Newstrike announced the issuance of official approval from the Canadian Competition Bureau for a planned acquisition.
Hexo (NYSEAMERICAN:HEXO,TSX:HEXO) and Newstrike Brands (TSXV:HIP) announced the issuance of official approval from the Canadian Competition Bureau for a planned acquisition.
As quoted in the press release:
Hexo and Newstrike Brands are pleased to announce that they have received regulatory approval from the Canadian Competition Bureau by way of a no-action letter under the Competition Act (Canada) indicating that it does not intend to challenge the proposed arrangement between Hexo and Newstrike, whereby Hexo intends to acquire all of the issued and outstanding common shares of Newstrike by way of a plan of arrangement under the Business Corporations Act (Ontario) (the “Transaction”). Receipt of the letter satisfies a key condition of the Transaction.
Hexo and Newstrike announced that they had entered into a definitive arrangement agreement with respect to the Transaction in March. The Transaction has already been unanimously approved by the board of directors of each of Hexo and Newstrike. In April, the companies announced that Hexo has entered into irrevocable hard voting support agreements with shareholders of Newstrike representing in aggregate approximately 38.3 [percent] of Newstrike’s issued and outstanding common shares.