OTTAWA, August 25, 2021 (GLOBE NEWSWIRE) – HEXO Corp. (“HEXO” or the “Company”) (TSX: HEXO; NASDAQ: HEXO) is pleased to announce that at its meeting of shareholders held earlier today (“Meeting”), the Holders (“Shareholders”) common shares of HEXO (“Common Shares”) demonstrated their overwhelming support for the previously announced acquisition of all of the outstanding shares of the entities carrying on the business of Redecan, Canada’s first licensed private producer (“Transaction”) , in consideration of $ 400 million which will be paid in cash in addition to the issuance of 69,721,116 common shares (“counterpart shares”), subject to certain customary adjustments. A total of 28,969,378 Common Shares (or approximately 19% of the issued and outstanding Common Shares) were represented at the Meeting in person by way of virtual attendance or by proxy.
At the Meeting, the shareholders voted overwhelmingly in favor of the ordinary resolution (“Transaction Resolution”) to, among other things, approve the issuance of the counterpart shares in connection with the Transaction. The resolution relating to the transaction was approved in a proportion of 96.183% of the votes cast by the shareholders. In addition, the shareholders also voted by an overwhelming majority in favor of the ordinary resolution (“financing resolution”) to approve the issuance of more than 32,198,894 common shares pursuant to the dated senior secured convertible note. of May 27, 2021 with a capital of US $ 360.0 million and maturing on 1is May 2023 (“senior secured note”), representing more than 25% of the issued and outstanding common shares, as well as the issuance of common shares at a price below their market price, less any allowable discount, such as it is determined by the rules of the TSX, in the event that HEXO wishes to settle the repayment or certain other payments under the Senior Secured Common Share Note. The financing resolution was approved with 94.992% of the votes cast by the shareholders. As previously announced, all regulatory approvals necessary to complete the transaction have been obtained. Completion of the transaction remains subject to other customary closing conditions and should take place over the next few days.
HEXO is an award-winning licensed producer of innovative products for the global cannabis market. HEXO serves the Canadian recreational cannabis market with its portfolio of HEXO, UP Cannabis, Original Stash, Bake Sale, Namaste and REUP brands, as well as the medical market in Canada, Israel and Malta. The Company also serves the Colorado market through its Powered by HEXO® strategy and Truss CBD USA, a joint venture with Molson Coors. In the event that the previously announced acquisitions of 48North and Redecan are completed, HEXO expects to be the number one cannabis product industry in Canada in terms of recreational cannabis market share..
For more information, visit the website www.hexocorp.com.
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