HEXO Announces Filing of Early Warning Report in Respect of the Former Zenabis Global Inc.
HEXO Corp. announced that it no longer holds any shares or interests in Zenabis Global Inc. following a court-approved amalgamation. The Superior Court of Québec's Zenabis Approval and Vesting Order, received on October 24, 2022, led to the amalgamation of Zenabis with its subsidiaries into Zenabis Ltd. (AmalCo). Subsequently, HEXO's shares in AmalCo were exchanged for shares in ResidualCo, which were then cancelled without any consideration. As a result, HEXO has no equity stake in Zenabis or its successor companies.
- HEXO has divested from Zenabis, potentially streamlining its focus on core operations.
- HEXO received no cash or consideration from the cancellation of its shares in ResidualCo.
GATINEAU, Quebec, Nov. 01, 2022 (GLOBE NEWSWIRE) -- HEXO Corp. (TSX: HEXO; NASDAQ: HEXO) (“HEXO” or the “Company”) today announced that, following the issuance of an approval and vesting order of the Superior Court of Québec (Commercial Division) on October 24, 2022 (as amended and restated on October 25, 2022) (the “Zenabis Approval and Vesting Order”) in connection with previously initiated proceedings under the Companies’ Creditors Arrangement Act relating to Zenabis Global Inc. (“Zenabis”) and its direct and indirect wholly-owned subsidiaries (collectively, the “Zenabis Group”), the Company no longer holds any shares, voting or equity securities or other interests in Zenabis or the Zenabis Group.
HEXO understands that, as part of the pre-closing steps approved by the Zenabis Approval and Vesting Order, Zenabis amalgamated with certain other companies within the Zenabis Group to form Zenabis Ltd. (“AmalCo”). Subsequently, all of the issued and outstanding shares of AmalCo then held by the Company as a result of such amalgamation were exchanged for common shares of a newly formed corporation (“ResidualCo”) and, immediately thereafter, all of the common shares of the capital of ResidualCo so held by the Company were cancelled for no consideration, as approved by the Zenabis Approval and Vesting Order. As a result of the foregoing, HEXO no longer holds any shares, voting or equity securities or other interests in any of the companies within the Zenabis Group, AmalCo or ResidualCo, and HEXO ultimately received no cash or other consideration for it so ceasing to hold any shares, voting or equity securities or other interests in Zenabis Global Inc. (including through the latter’s successor, namely AmalCo).
About HEXO
HEXO is an award-winning licensed producer of innovative products for the global cannabis market. HEXO serves the Canadian recreational market with a brand portfolio including HEXO, Redecan, UP Cannabis, Original Stash, 48North, Trail Mix, Bake Sale and Latitude brands, and the medical market in Canada and Israel. The Company also serves the Colorado market through its Powered by HEXO® strategy and Truss CBD USA, a joint venture with Molson-Coors. With the completion of HEXO's acquisitions of Redecan and 48North, HEXO is a leading cannabis products company in Canada by recreational market share. For more information, please visit hexocorp.com.
For Canadian media or investor inquiries please contact:
Hayley Suchanek, Kaiser & Partners
hayley.suchanek@kaiserpartners.com
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