Tara Deschamps
Cannabis plants are seen during a tour of a Hexo Corp. production facility, Thursday, October 11, 2018 in Masson Angers, Que. Hexo Corp. will buy cannabis producer Redecan in a $925 million deal comprised of cash and shares. THE CANADIAN PRESS/Adrian Wyld May 28, 2021 - 7:56 AM
Hexo Corp. will buy cannabis producer Redecan in a $925-million deal as the pot company continues its hunt for market share.
Ottawa-based Hexo said Friday that it will pay $400 million in cash and $525 million in Hexo shares valued 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
CANADA STOCKS-TSX hits record high on energy boost Reuters 1 hr ago
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May 28 (Reuters) - Canada s main stock index hit a record high on Friday, buoyed by gains in energy stocks on stronger oil prices as expectations of a rebound in fuel demand overshadowed concerns about more supply from Iran once sanctions are lifted. The energy sector climbed 0.7% as U.S. crude prices rose 0.7%, while Brent crude added 0.5%. At 9:42 a.m. ET (13:42 GMT), the Toronto Stock Exchange s S&P/TSX composite index was up 100.87 points, or 0.51%, at 19,875.28. HEXO Corp rose 10.1% after saying it would buy Redecan, a Canadian privately-owned licensed cannabis producer, for C$925 million ($764.72 million) in a cash-and-stock deal.
In a move that’s expected to catapult it into top spot among Canadian recreational cannabis producers, Ottawa’s Hexo Corp. has agreed to acquire Toronto-based Redecan for $925 million.
Hexo said Friday that it will pay $400 million in cash and $525 million in Hexo shares valued at $7.53 per share.
The deal for the southern Ontario company, the country’s largest privately held pot producer, will increase Hexo’s share in the competitive cannabis market and lay the groundwork for global expansion, CEO Sebastien St-Louis told analysts.
“A few years ago, Hexo set a course to become one of the top three cannabis players in the Canadian adult-use market,” St-Louis said. “We’ve achieved and exceeded this objective. Today, we’ve positioned Hexo as No. 1. It’s a monumental achievement.”
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The cannabis sector had witnessed strong buying earlier this year amid optimism over the increased legalization and improving operating metrics. However, the sector has been under pressure in the last three months amid concerns over speculative trading and higher valuation. Meanwhile, the selloff offers an excellent buying opportunity given the expansion in cannabis sales. So, here are four top Canadian cannabis stocks that you can buy right now.
Tilray
My first pick is
Tilray (NASDAQ:TLRY), which recently completed its merger with Aphria to form the largest cannabis company in the world. Further, the merger has expanded the company’s product offerings while providing low-cost cultivation, processing, and manufacturing facilities. With E.U. GMP-certified production facility in Portugal and a strong distribution network in Germany, the company is well equipped to pursue its growth opportunities in the international markets.
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