Why HEXO Shares Are Trading Higher Today

HEXO Corp HEXO is trading higher Thursday after the company announced a strategic partnership with Tilray Brands Inc TLRY which includes a new debt financing agreement.

Under the new agreement, Tilray will acquire $211 million of senior secured convertible notes that were originally issued by HEXO. HEXO said the new note terms will enable the company to strengthen its balance sheet and accelerate its transformation into a cash flow positive business within the next four quarters.

"My top priority since I joined in November has been to fix a very challenged balance sheet as a result of the Notes that were previously put in place, and today, after an exhaustive search for alternatives, we are announcing the most optimal agreement to strengthen our balance sheet, preserve value for shareholders and provide HEXO with the capital to execute on our The Path Forward plan," said Scott Cooper, president and CEO of HEXO.

In addition to the restructured debt, HEXO also signed an agreement with KAOS Capital in which the company will provide roughly a $142 million equity backstop for HEXO.

See Also: What's Going On With Best Buy Shares Today?

HEXO Price Action: HEXO has traded as low as 46 cents and as high as $8.50 over a 52-week period.

The stock was up 18.1% at 68 cents at time of publication.

Photo: herbalhemp from Pixabay.