Ottawa, Ontario-headquartered cannabis producer Hexo Corp. on Tuesday entered a definitive arrangement agreement to buy struggling competitor Zenabis Global for 235 million Canadian dollars ($185 million) in stock. The proposed acquisition of Vancouver, British Columbia-based Zenabis would give Hexo a toehold in Europe’s medical marijuana market. Zenabis shareholders will receive 0.01772 of a Hexo share per Zenabis share under the terms of the proposed arrangement, which represents a 19% premium over the 20-day average as of Feb. 12, the companies said in a news release announcing the planned acquisition. Both businesses have sold off infrastructure and reported considerable losses in recent years.
Marijuana Business Daily, 02/16/2021 14:47:00