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April 10 (Reuters) – Tilray Brands Inc TLRY.O said on Monday it would buy Canadian cannabis company Hexo Corp HEXO.TO for $56 million, which would cement the pot producer’s top position in Canada in terms of market share.
Hexo shareholders will receive 0.4352 of a share of Tilray common stock in exchange for each share held. Shares of Hexo plunged 22.6% to $1.27 in extended trade, while Tilray fell 2% to $2.68.
Tilray said the deal includes anticipated pro-forma net sales of $215 million and low-cost operations with distribution across all Canadian geographies.
“The combined company is expected to strengthen Tilray’s existing Canadian position with 12.9% pro-forma market share and number 1 market position across all major markets and a leading share across most product categories,” Tilray added in a statement.
(Reporting by Arunima Kumar in Bengaluru; Editing by Krishna Chandra Eluri)
((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94 ;))
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