Article by Emma Spears, Growth Op
Gatineau, Quebec-based cannabis producer HEXO Corp. has announced its acquisition of fellow Canadian LP Redecan for $925 million in cash and stocks, positioning the company as one of the biggest adult-use players in Canadian cannabis.
HEXO will issue $525 million in common stock and $400 million in cash to acquire the family-owned Ontario-based cannabis producer. The deal is anticipated to close in the third quarter.
“The Canadian adult-use industry continues to evolve at a rapid pace, and we are at the forefront of that change,” HEXO CEO and co-founder Sebastien St-Louis said in a press release.
“We will also be able to provide consumers across Canada with a diverse and innovative range of high-quality products, with an enhanced brand offering that will enable us to better compete against other LPs in Canada, while positioning the company for future expansion in the United States,” he added.