(Gatineau) Tilray Brands and Hexo have revised the terms of a 211 million agreement signed by the two cannabis producers, which could see Tilray hold a stake in its rival.
Posted at 12:02 p.m.
The companies say the deal now includes an additional discount on Tilray’s purchase price and a reduction in the conversion price Tilray will pay for tickets issued by Gatineau-based Hexo and HT Investments (HTI).
Under the amended agreement, Tilray, based in Leamington, Ontario, would acquire the Notes from HTI, which include an outstanding balance of $185 million, together with any accrued and unpaid interest, for 89.2% of the outstanding balance.
This portion of the balance now equates to a 10.8% discount and will be coupled with a lower ticket conversion price from 85 cents to 40 cents per share.
The new terms will allow Tilray to convert half of its outstanding Hexo common stock this month, but the overall deal isn’t expected to close until at least July 15 and could now take until July 1.er August due to adjustments.
The previously announced deal will see Tilray and Hexo work together under a strategic agreement, where Tilray will serve as a third-party manufacturer for Hexo. The companies will share the savings equally and Hexo will pay Tilray an annual fee of $18 million for providing consulting services.
Companies in this story: (TSX: HEXO)