Tilray Brands announced a definitive financial and commercial partnership agreement with HEXO Corp in the first week of April. This strategic partnership creates a collaborative agreement for product innovation, including the optimization of Cannabis 2.0 products and Cannabis 3.0 Wellness products. A couple of months later, the $155 million investment has finally been completed, and both companies announced it with considerable excitement.
The world’s leading marijuana company indicated Tuesday that it has finally closed its previously disclosed acquisition of HT Investments of the secured convertible note issued by HEXO. This alliance is expected to optimize the consumer experience while strengthening the potential of the Tilray brands for federal legalization in the US and a much larger global footprint.
“We are excited to close on this strategic transaction and alliance with HEXO, which is expected to provide several financial and commercial benefits, including substantial cost-savings synergies, increased strength in product innovation to capitalize on market opportunities in Canada and internationally, along with the US, upon federal legalization,” stated Irwin D. Simon, Tilray Brands’ chairman and CEO. He added that this is an unparalleled opportunity to continue to realize the company’s vision of laying the foundation for the next evolution of cannabis in Canada and taking the consumer experience to the next level.
As revealed some time ago, the collaboration brings together Canada’s two leading cannabis companies. As a result, they will be able to strengthen their corresponding operations and pave the way for manufacturing efficiencies that are believed to bring productivity gains and other cost savings amid extremely competitive market trends.
Companies are aware that in order to be successful in Canada, they must focus on operational excellence and product innovation. Therefore, Tilray hopes that this collaboration with HEXO will be sufficient to achieve that goal and deliver value to shareholders.