Business
Tilray Brands Announces Enhancements to Accretive Strategic Transaction with HEXO
Amended Terms Include Increased Discount on Purchase Price of HEXO Note and Reduced Tilray Conversion Price on HEXO Shares Reaffirms $80 Million in Projected
About this update from Tilray Brands, Inc.
[{"type":"text","content":"Amended Terms Include Increased Discount on Purchase Price of HEXO Note and Reduced Tilray Conversion Price on HEXO Shares Reaffirms $80 Million in Projected Shared Cost-Saving Synergies Expected to Close in July 2022 LEAMINGTON, Ontario, June 14, 2022 (GLOBE NEWSWIRE) -- Tilray Brands, Inc. (“Tilray Brands” or the “Company”) (Nasdaq | TSX: TLRY) today announced that the Company has entered into amendments to improve the terms of its previously-disclosed agreements to acquire all of the outstanding principal, plus accrued and unpaid interest, under a secured convertible note (the “HEXO Note”) issued by HEXO Corp. (“HEXO”) to HT Investments MA LLC (“HTI”). These amendments provide for, among other things, an additional discount to Tilray Brands’ purchase price as well as the reduction of the conversion price under the HEXO Note from CAD$0.85 to CAD$0.40 per share. Irwin D. Simon, Tilray Brands’ Chairman and CEO, said, “We believe HEXO continues to be the right strategic partner for Tilray Brands in Canada and, therefore, look forward to closing this transaction in July and working with HEXO to deliver on the promise and the potential of this partnership for our shareholders, consumers, and employees.” Charlie Bowman, HEXO’s President and CEO, added, “The strategic alliance with Tilray Brands accelerates HEXO’s operational turnaround and unlocks capital to expand our market leadership globally. The partnership is an essential next step in improving our capital structure, and we’re confident that the synergies realized will reset the industry.” As previously announced, the strategic alliance between Tilray Brands and HEXO is expected to provide several financial and commercial benefits, including: Substantial Synergies: the strategic alliance between Tilray Brands and HEXO is expected to deliver up to $80 million of shared cost-saving synergies within two years of the completion of the Transaction. Both companies have already begun working on evaluating operations and production efficiencies with respect to cultivation and processing services, including pre-rolls, beverages and edibles, as well as shared services and procurement. In conjunction with the sharing of synergies, HEXO will pay Tilray Brands an annual fee of $18 million for advisory services with respect to cultivation, operation, and production matters.Accretion: as a r...