HEXO Elects Seven Directors At Its Shareholders Meeting On The Heels Of Tilray Deal

HEXO Corp. (NASDAQ:HEXO) (TSX:HEXO) elected seven directors at the annual general and special meeting of shareholders held on March 8, 2022.

Directors are: Mark Attanasio, Vincent Chiara, Hélène F. Fortin, Rose Marie Gage, Rob Godfrey, Peter James Montour and Will Montour.

All other items of business put forward at the meeting were approved, including the reappointment of PricewaterhouseCoopers LLP as HEXO’s auditor, the change of the location of HEXO’s registered office, the increase to the maximum number of directors from ten to twelve, the proposed share consolidation and the approval of the unallocated awards and certain prior awards under HEXO’s amended and restated omnibus long-term incentive plan. Further details on these items of business can be found in the report of voting results and management information circular which are available under HEXO’s profile on SEDAR.

On The Heels Of Tilray Deal

The news comes on the heels of a strategic partnership with Tilray Brands, Inc. (NASDAQ:TLRY), which includes a new debt financing agreement. Under the new agreement, Tilray Brands will acquire $211 million of senior secured convertible notes that were originally issued by HEXO to HT Investments MA LLC.

The new terms of the notes are significantly more favorable to HEXO and will enable the company to strengthen its balance sheet and accelerate its transformation into a cash flow positive business within the next four quarters. The new partnership also brings together Canada’s top two cannabis market share leaders and is expected to create efficiencies of up to CA$50 million ($39.57 million) within two years which will be shared equally between HEXO and Tilray Brands.

Price Action

Hexo shares were trading 3.16% higher at $0.59 per share during Wednesday's pre-market session.

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