Hexo Corp. has announced a deal to buy cannabis producer Redecan for $925 million as the pot company continues its hunt for market share.
Pique report
Hexo Corp. has announced a deal to buy cannabis producer Redecan for $925 million as the pot company continues its hunt for market share.
Ottawa-based Hexo said Friday that it has agreed to pay $400 million in cash and $525 million in Hexo shares at $7.53 per share.
The deal for Toronto-based Redecan, which is privately held, will increase Hexo’s share in the competitive cannabis market and build on its long-standing plan to become a top three cannabis player in the Canadian adult-use market
“We set out to become top three. Today, we positioned HEXO as No. 1,” Sebastien St-Louis, Hexo’s chief executive and co-founder, told analysts on a call.
“For those of you who don’t know Redecan, it may be the … best-kept secret in the industry to many investors, but it’s a clear favourite amongst Canadian cannabis consumers.”
