HEXO Corp [NYSE: HEXO] revealed that the company has inked a contract with Zenabis Global to purchase its share. Under the contract, HEXO will purchase all issued and outstanding stock of Zenabis in an all-stock transaction valued at $235 Million.
The Transaction was affirmed by the board of directors of HEXO and Zenabis. Moreover, Zenabis’s directorate collectively suggests that its investors vote for the Transaction. The Transaction gives HEXO quick access to the European clinical cannabis market through Zenabis’s local accomplice, with a setup facility. The facility will be in the European Union providing pharmaceutical items to the European market.
The facility additionally fills in as a European Union Good Manufacturing Practice bundling and distribution place for clinical cannabis items delivered in Zenabis’ Atholville Facility. The proposed Transaction would give HEXO access to the authorized ability to deliver 111,200 kg of extra top-notch cannabis yearly.
The Transaction would bring about HEXO purchasing two indoor offices (roughly 635,000 sq. ft.) and access to a 2.1 million sq. ft. greenhouse facility. This provides a platform for development and establishment from which to fortify and diversify our portfolio of brands.
Sebastien St-Louis, CEO of HEXO said, “We’re excited to invite the Zenabis group into the HEXO family. Zenabis has constructed strong connections. Moreover, they share HEXO’s vision of bringing outstanding branded cannabis encounters to adults, in Canada and abroad. We are going forward with this acquisition because we think that it ought to be accretive for our investors. Furthermore, it will position HEXO for rapid domestic and global development”