HEXO - Cannabis company HEXO to buy Zenabis Global in $235M deal

Consumer packaged goods cannabis company HEXO ([[HEXO]] +6.5%) has entered into a definitive arrangement agreement to acquire Zenabis Global ([[ZBISF]] +25.8%), a Canadian licensed cultivator of medical and recreational cannabis, in an all-share deal valued at about $235M, giving HEXO immediate access to the European medical cannabis market.Under the terms of the deal, Zenabis shareholders will receive 0.01772 of a HEXO share in exchange for each Zenabis share held.HEXO estimates that the combined company may realize annual synergies of about $20M within one year of close.The proposed deal would also give HEXO access to licensed capacity to produce about 111K kg of additional high-quality cannabis annually.The deal also provides for a termination fee of $6M payable by Zenabis to HEXO if the transaction is terminated in certain specified circumstances.

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Cannabis company HEXO to buy Zenabis Global in $235M deal