Pot producer Tilray to buy out $193 million remaining debt from rival Hexo

April 12 (Reuters) – Tilray Brands (TLRY.O) said on Tuesday it had agreed to buy $193 million of remaining debt from Hexo (HEXO.TO), in a deal that gives the cannabis producer the right to take a significant stake. in his troubled rival.

This is the second such agreement by Tilray. In March, the company agreed to buy up to $211 million of Hexo’s debt.

Tilray said on Tuesday it would purchase the notes from debt holder HT Investments MA LLC. An amended agreement will allow Tilray to exercise conversion rights at C$0.85 per Hexo share to acquire a significant stake in the future. The March deal had a conversion price of C$0.90 per Hexo share.

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Last year, Hexo disclosed a lingering concern over a senior secured convertible note and said it may not have enough cash to help pay down debt. Read more

Hexo will pay Tilray an annual fee of $18 million for consulting services related to culture, operations and production, the company announced Tuesday.

Shares of Hexo closed at C$0.72 on Monday.

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Reporting by Rithika Krishna in Bengaluru; Editing by Sriraj Kalluvila

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