Hexo to acquire 48North Cannabis Corp. in the latest merger in cannabis sector

Hexo Corp. HEXO, -0.66% HEXO, -1.62% said Monday it has agreed to acquire 48North Cannabis Corp. NCNNF, -0.79% NRTH, -8.57% in an all-stock deal valued at about C$50 million ($41.3 million). Hexo, which in February announced the acquisition of Zenabis Global Inc. in an all-stock deal valued at about C$235 million, said this latest deal is expected to generate synergies of about C$12 million annually within one year of close. The deal expands its product line to include topicals, bath and intimacy products. Under the terms of the deal, 48North shareholders will receive 0.02366 of a Hexo share for each share owned. Including a working capital bridge loan that Hexo will extend to 48North, the deal offers a premium of about 20% based on the 10-day volume-weighted average price of 48North common shares on the TSX-V and HEXO common shares on the TSX as of the close of markets on Friday. Hexo shareholders will own 96% of the combined company’s shares, while 48North shareholders will own the remaining 4%. 48North’s U.S.-listed shares were not yet active premarket, while Hexo shares were up 0.5% and have gained 65% in the year to date, while the Cannabis ETF THCX, +1.46% has gained 26% and the S&P 500 SPX, -0.25% has gained 11%.

Source:    https://www.marketwatch.com/story/hexo-to-acquire-48north-cannabis-corp-in-the-latest-merger-in-cannabis-sector-2021-05-17

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