HEXO Corp ("HEXO") (TSX: HEXO; NYSE-A: HEXO) and Newstrike Brands Ltd. ("Newstrike") (TSX-V: HIP) are pleased to announce that they have received regulatory approval from the Canadian Competition Bureau by way of a no-action letter under the Competition Act (Canada) indicating that it does not intend to challenge the proposed arrangement between HEXO and Newstrike, whereby HEXO intends to acquire all of the issued and outstanding common shares of Newstrike by way of a plan of arrangement under the Business Corporations Act (Ontario) (the “Transaction”). Receipt of the letter satisfies a key condition of the Transaction.
HEXO and Newstrike announced that they had entered into a definitive arrangement agreement with respect to the Transaction in March. The Transaction has already been unanimously approved by the board of directors of each of HEXO and Newstrike. In April, the companies announced that HEXO has entered into irrevocable hard voting support agreements with shareholders of Newstrike representing in aggregate approximately 38.3% of Newstrike's issued and outstanding common shares.
The Transaction remains subject to customary closing conditions, including approval by Newstrike shareholders at Newstrike’s Annual and Special Meeting on May 17, 2019, and final court approval. Subject to satisfaction of these closing conditions, the Transaction is expected to close by May 24, 2019. Newstrike’s board of directors has recommended that its shareholders vote in favour of the Transaction.
For further information, please contact:
Jay Wilgar, CEO, Newstrike
HEXO Corp is an award-winning consumer packaged goods cannabis company that creates and distributes prize-winning products to serve the global cannabis market. Through its hub and spoke business strategy, HEXO Corp is partnering with Fortune 500 companies, bringing its brand value, cannabinoid isolation technology, licensed infrastructure and regulatory expertise to established companies, leveraging their distribution networks and capacity. As one of the largest licensed cannabis companies in Canada, HEXO Corp operates with 1.8 million sq. ft of facilities in Ontario and Quebec and a has foothold in Greece to establish a Eurozone processing, production and distribution centre. The Company serves the Canadian adult-use and medical markets. For more information please visit hexocorp.com.
About Newstrike and Up Cannabis
Newstrike is the parent company of Up Cannabis Inc., a licensed producer of cannabis that is licensed to both cultivate and sell cannabis in all acceptable forms. Newstrike, through Up Cannabis and together with select strategic partners, including Canada’s iconic musicians The Tragically Hip, is developing a diverse network of high quality cannabis brands. For more information, visit http://www.up.ca or http://www.newstrike.ca