Hexo to buy Redecan for $925 million as hunt for more cannabis market share continues

OTTAWA — Hexo Corp. will buy cannabis producer Redecan in a $925-million deal comprised of cash and shares.

Ottawa-based Hexo says it will pay Toronto’s Redecan $400 million in cash and $7.53 per share for a total of $525 million.

Redecan shareholders will hold about 31 per cent of HEXO’s issued and outstanding common shares immediately following the closing of the transaction.

Hexo says the deal will make it the Canadian volume leader in dried flower across premium, mainstream and value price points and expand its portfolio with Redecan’s oils, capsules, and pre-rolls.

With the deal, Hexo believes it is on the verge of holding the most market share of all the producers in the recreational market and surpassing its goal of becoming a top three cannabis producer.

Hexo announced earlier this month that it would also purchase 48North Cannabis Corp. for $50 million and in February said it will buy Zenabis Global Inc. for $235 million.

This report by The Canadian Press was first published May 28, 2021.

Companies in this story: (TSX:HEXO, TSX:ZENA)

The Canadian Press