Saturday, May 28, 2022
High Yields Cannabis/Marijuana/ Weed News
  • Home
  • Cannabis Stocks
  • Cannabis Strains
  • Cannabis Laws
    • Marijuana Laws in All 50 States
    • International Marijuana Laws 2021
  • Product Reviews
  • Growing
  • Write for Us
No Result
View All Result
  • Home
  • Cannabis Stocks
  • Cannabis Strains
  • Cannabis Laws
    • Marijuana Laws in All 50 States
    • International Marijuana Laws 2021
  • Product Reviews
  • Growing
  • Write for Us
No Result
View All Result
High Yields
No Result
View All Result
Home News

Hexo strikes deal to acquire Zenabis for CA$235 million, eyes European cannabis market

Jeremy Vedder by Jeremy Vedder
March 3, 2021
in News
0
Hexo strikes deal to acquire Zenabis for CA$235 million, eyes European cannabis market

Related Tags:

Privacy settings,How Search works,hexo

READ ALSO

California Marijuana Tax Revenue Nears $4 Billion, But Growth Has Stalled, State Analysts Say

New York Marijuana Regulators Ask TikTok To Stop Banning Cannabis Education Advertising

(This story has been updated with comments from Hexo’s CEO).

Cannabis producer Hexo Corp. based in Ottawa, Ontario, reached a definitive agreement Tuesday to buy rival Zenabis Global for C$235 million ($185 million).

The proposed acquisition of Zenabis, based in Vancouver, British Columbia, would enable Hexo to gain a foothold in the European medical marijuana market and become the third largest producer in Canada’s recreational medicine market, said Sebastien St. Denis, Hexo’s president. Louis in a telephone interview with Marijuana Business Daily.

Under the terms of the proposed program, Zenabis shareholders will receive 0.01772 Hexo shares per Zenabis share, representing a 19% premium to the 12-day average. In February, the companies stated in a press release that they had announced the proposed acquisition.

Both companies have sold infrastructure in recent years and reported significant losses.

Hexo lost C$4.2 million in the previous quarter and C$546.5 million in the previous fiscal year.

In the nine months prior to June 30, Zenabis realized a total of A$40.5 million in September 2020 and a further A$127 million in fiscal 2019.

We are pursuing this transaction because we believe it is a great deal for our shareholders and allows Hexo to accelerate its national and international growth, while maintaining a near-term need for additional licensed capacity, Mr. St. Louis said in a press release.

Hexo’s growth strategy includes expansion of our global presence, and this acquisition is an important step in that direction.

The transaction has been approved by the Boards of Directors of the respective companies, but is subject to approval by Zenabis’ shareholders.

Louis told MJBizDaily that the deal would make Hexo one of Canada’s largest manufacturers.

Together, the two companies have achieved $53.2 million in quarterly revenue in recent quarters.

This is close to the sales of rival producer Aurora Cannabis, which reported sales of $67 million. CA$ in the previous quarter.

The deal will also allow Hexo to gain a foothold in the European medical marijuana market.

The agreement gives Hexo immediate access to the European market for medicinal cannabis through its local partner Zenabis, with a branch in the European Union that supplies pharmaceutical products to the European market, the company said.

According to an update from Zenabis’ investor last summer, the company reached an agreement to supply the growing Israeli and Australian markets.

Hexo’s decision comes at a time when some competing Canadian companies are reducing their presence in the European market.

For example, Aurora cannabis and canopy growth are included in 2020 expansion plans in Europe.

A Marijuana Business Daily report on Europe published last year estimated that annual retail sales in Germany would reach at least 170 million euros ($200 million) by 2019. By comparison, Canadian spending in that year was about $618 million.

Hexo also stated that through the proposed agreement it would gain access to a greenhouse complex totaling approximately 2.1 million square feet, which provides diversified growing and production methods.

According to the press release, Zenabis is also bringing in two in-house production facilities, which will allow Hexo to produce approximately 111,200 kg (245,154 pounds) annually.

Louis told MJBizDaily that the Zenabis facility is used to produce high-quality products that require a small acreage, while the Hexo greenhouse in Quebec is more focused on large-scale production.

Less than a year ago, Hexo sold for about C$10.25 million a large greenhouse in Niagara, Ontario, which it had previously acquired in a C$263 million transaction to purchase Newstrike Brands.

Canada also has a growing stock surplus, which has reached a staggering 1.06 million kilograms after the country’s first major plowing season – when most of the fall harvest is harvested outdoors.

Late last year, Zenabis entered into a conditional agreement to sell one of its properties in British Columbia for half the original asking price.

At 30. As of September 2020, Zenabs had C$4.8 million in cash.

At the end of the previous quarter ended December 31, 2009, the Group had $149.8 million in cash.

The Company’s shares are traded under the name HEXO on the New York Stock Exchange and the Toronto Stock Exchange.

Matt Lamers is the international editor of the Marijuana Business Daily, in the Toronto area. He can be contacted at [email protected].

Related Tags:

Privacy settings,How Search works,hexo

Total
0
Shares
Share 0
Tweet 0
Pin it 0
Share 0

Related Posts

American Green, Inc.™ (OTC:ERBB) Earns Five Year Cannabis
News

California Marijuana Tax Revenue Nears $4 Billion, But Growth Has Stalled, State Analysts Say

May 27, 2022
Agra Ventures Announces Details of Share Consolidation
News

New York Marijuana Regulators Ask TikTok To Stop Banning Cannabis Education Advertising

May 26, 2022
PURA Farmersville Hemp Partnership Income Potential
News

California Marijuana Retailers ‘100 Percent’ Compliant In Checking IDs To Prevent Youth Access, Study Finds

May 26, 2022
Delta 8 Gummies – Complete Guide
News

Delta 8 Gummies – Complete Guide

May 25, 2022
8 SEO Tips for Cannabis Businesses
News

8 SEO Tips for Cannabis Businesses

May 25, 2022
5 Tips to Find the Best Weed Online Dispensary
News

5 Tips to Find the Best Weed Online Dispensary

May 25, 2022
Next Post
California Cannabis Trademark Lawsuit Highlights Industry Pitfall — Cannabis Law Group’s — February 16, 2021

California Cannabis Trademark Lawsuit Highlights Industry Pitfall — Cannabis Law Group’s — February 16, 2021

  • Trending
  • Comments
  • Latest
Monthly Spotlight: The Best of Plain Jane CBD

Monthly Spotlight: The Best of Plain Jane CBD

April 8, 2022
The Ultimate Dr. Dabber Stella Vaporizer Review for 2022

The Ultimate Dr. Dabber Stella Vaporizer Review for 2022

April 19, 2022
volcano hybrid review 2022

The 2022 Volcano Hybrid Vaporizer Review: All You Need To Know

May 23, 2022
The Utillian 5 v3 Wax Pen Review for 2022

The Utillian 5 v3 Wax Pen Review for 2022

March 27, 2022

The 7 Best Smell-Proof Weed Bags To Keep Your Bud Stash Safe

April 27, 2022
The Best Synthetic Urine Kit to Pass Your Drug Test in 2022

The Best Synthetic Urine Kit to Pass Your Drug Test in 2022

May 23, 2022
The 10 Best Smell Proof Backpacks for Weed in 2022

The 10 Best Smell Proof Backpacks for Weed in 2022

May 5, 2022
HEXO Corp.’s Shareholders Overwhelmingly Approve Redecan

HEMPSANA Announces Q1 2022 Financial Results

May 27, 2022
Former NFL Running Back Marshawn Lynch Launches Premium Blunt Brand

Former NFL Running Back Marshawn Lynch Launches Premium Blunt Brand

0
Major Marijuana Coalition Forms To Coordinate Legalization Push, But Some Key Advocacy Players Aren’t Involved

Major Marijuana Coalition Forms To Coordinate Legalization Push

0
MMJRecs - cannabis leaf

How Medical Marijuana Can Help Treat Sleep Disorders

0
Colorado Cannabis Sales Exceed $2 Billion in 2020

Colorado Cannabis Sales Exceed $2 Billion in 2020

0
HEXO Corp.’s Shareholders Overwhelmingly Approve Redecan

HEMPSANA Announces Q1 2022 Financial Results

May 27, 2022
American Green, Inc.™ (OTC:ERBB) Earns Five Year Cannabis

Akerna Announces Corporate Restructuring

May 27, 2022
American Green, Inc.™ (OTC:ERBB) Earns Five Year Cannabis

California Marijuana Tax Revenue Nears $4 Billion, But Growth Has Stalled, State Analysts Say

May 27, 2022
One man killed, one wounded in Valinda shooting

Rubicon Organics Inc. Announces Change of Auditor and

May 27, 2022

Archives

  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • March 2020

Categories

  • 1933 Industries
  • 4front Ventures
  • Acreage Holdings
  • Ascend Wellness
  • Ayr Wellness
  • Body & Mind
  • C21 Investments
  • Cannabis Stock Quotes & News
  • Cansortium Inc
  • Captor Capital
  • Ceres Acquisition Corp
  • Chalice Brands
  • Columbia Care
  • Cresco Labs
  • CuraLeaf
  • Gage Growth
  • Glass House Brands
  • Green Thumb Industries
  • Grown Rogue International
  • Harborside
  • Item 9 Labs
  • Jushi Holdings
  • Lowell Farms
  • MariMed
  • MedMen Enterprises
  • News
  • Next Green Wave
  • Planet 13
  • Plus Products
  • Product Reviews
  • Red White & Bloom
  • SLANG Worldwide
  • Sol Global Investments
  • TerrAscend
  • TILT Holdings
  • Trulieve
  • Verano Holdings
  • Vext Sciences
  • Vibe Growth

Recent Posts

  • HEMPSANA Announces Q1 2022 Financial Results
  • Akerna Announces Corporate Restructuring
  • California Marijuana Tax Revenue Nears $4 Billion, But Growth Has Stalled, State Analysts Say
  • Rubicon Organics Inc. Announces Change of Auditor and

QR Code

Hexo strikes deal to acquire Zenabis for CA$235 million, eyes European cannabis market
No Result
View All Result
  • Homepages
    • Home Page 1
  • News

© 2021 High Yields