Tilray agrees to buy up to $211 mln in Hexo debt

Tilray Brands Inc. /zigman2/quotes/209129655/composite TLRY +1.70% /zigman2/quotes/226578748/delayed CA:TLRY +2.22% said Thursday it would buy up to $211 million of Hexo Corp. senior secured convertible notes held by HT Investments MA LLC as part of a strategic alliance between the two cannabis companies. Tilray would have the right to convert the debt into stock at a price of 90 cents per Hexo share. The transaction will provide Tilray with a "significant equity ownership position" in Hexo, the company said. Hexo would pay Tilray about C$20 million in interest payments the first year, or about 4 cents a share in earnings. Tilray said it will also realize about C$50 million in efficiency savings within two years. Hexo said the deal will provide it with more favorable terms on the debt and will allow the company to strengthen its balance sheet and "accelerate its transformation into a cash flow positive business within the next four quarters." Shares of Hexo rose 27% in premarket trades, but remained well under $1 a share. Tilray dipped 0.2%.

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Tilray Brands Inc.

US : U.S.: Nasdaq

$ 2.39

+0.04 +1.70%

Volume: 15.58M

Sept. 29, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$1.70 billion

Rev. per Employee

$391,953

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Tilray Brands Inc.

CA : Canada: Toronto

$ 3.23

+0.07 +2.22%

Volume: 1.42M

Sept. 29, 2023 4:00p

P/E Ratio

N/A

Dividend Yield

N/A

Market Cap

$2.29 billion

Rev. per Employee

$523,474