HEXO Completes $50M Acquisition Of 48North Cannabis On Heels Of $925M Redecan Acquisition

HEXO Corp. HEXO HEXO and 48North Cannabis Corp. NRTH announced Wednesday that they have completed the previously announced arrangement pursuant to which HEXO has acquired all of the issued and outstanding common shares of 48North. The all-stock deal was previously valued at $50 million.

The news came on the heels of the company’s $925M Redecan acquisition.

What happened

Under the terms of the agreement, each former shareholder of 48North is now entitled to receive 0.02366 of a common share in the capital of HEXO for each 48North Share held immediately prior to the completion of the arrangement.

In order to receive the consideration, registered holders of 48North Shares will be required to deposit their share certificate(s) representing 48North Shares, together with a duly completed letter of transmittal, with TSX Trust Company, the depositary under the Arrangement. Shareholders whose 48North Shares are registered in the name of a broker, dealer, bank, trust company or other nominee should contact their nominee regarding the receipt of the consideration.

It is anticipated that 48North Shares will be de-listed from the TSX Venture Exchange as of the close of trading on or about September 2, 2021.

In connection with the completion of the arrangement, each of the officers and directors of the boards of directors of 48North and its subsidiaries resigned.

Cormark Securities Inc. acted as financial advisor to 48North. Norton Rose Fulbright Canada LLP acted as legal counsel to HEXO and Bennett Jones LLP acted as legal counsel to 48North.

More Recent News From HEXO:

$925M Acquisition Of Redecan Could Create A Brighter Future For Hexo Corp.

EXCLUSIVE: Why Canadian Cannabis Companies With US Operations Can Still List On NYSE & NASDAQ?

 HEXO's Stock On Rise Again As Shareholders Approve Redecan Acquisition

HEXO's Stock Continues To Drop After Switching To NASDAQ

Price Action

Hexo’s shares were trading 2.85% lower at $2.39 per share at the time of writing Wednesday morning.

Photo: Courtesy of Jeff W on Unsplash

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