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C'mon guys, HIP obviously wants to run up it if you get a grip and remove that ask! ;). With or without u - going up.
I've seen lots of articles like this one ... follow a natural business cycle: They blossom, then they consolidate. ... I'm not sure how smaller LPs are going to be able to survive unless they join forces,"
https://www.theglobeandmail.com/report-on-business/streetwise/marijuana-mania-after-aphria-deal-more-industry-consolidation-likely/article37781168/
2019 Explosion Of Cannabis Mergers And Acquisitions Predicted
https://www.forbes.com/.../julieweed/.../2019-explosion-of-cannabis-mergers-and-acq...
Dec 27, 2018 - Companies that want to expand to other states need to establish ... to grow and mature, he expects to see more of this consolidation in 2019.
Cannabis Consolidation Is The Next Big Trend | ONE Cannabis
https://ocginc.com/brace-yourselves-cannabis-consolidation-is-coming/
Dec 17, 2018 - Small dispensaries often don't have the resources to compete, which ... That was followed up quickly by news that four cannabis firms were working ... facets of business— finding valuable partners can be the key to survival
HEXO'$ plan from the interview was to be one the top 3 global cannabis companies.. rising tide lifts all boats if your in one kind of thing. 16% of a big thing is a lot.
https://www.much.com/inspiring-gord-downie-lyrics-courage/
HEXO/HIP$
I honestly do not think it is a good deal for shareholders whatsoever
So we're getting a little over half a share but at 5 dollar valuation per hexos stock price?
This is awesome NEWS! Thanks, Doog:) HIP
We knew it was only a matter of time until someone made another buy out offer right Smoke congratz!
Someone should sticky this! Good day here as well as HEXO
Welcome to da famlee ;)
https://twitter.com/cannabisnewsDD/status/1105821419064029185
+.03 so far..
HEXO Corp to acquire Newstrike Brands Ltd.
With this acquisition, HEXO will add 470,000 sq. ft. in production space when completed, additional public and private retail channels, and a branding relationship with members of The Tragically Hip
Over $400 million of pro forma net annual revenue ending July 2020 expected by HEXO following acquisition
GATINEAU, Quebec and TORONTO, March 13, 2019 (GLOBE NEWSWIRE) -- HEXO Corp ("HEXO") (TSX: HEXO; NYSE-A: HEXO) and Newstrike Brands Ltd. ("Newstrike") (TSX-V: HIP) are pleased to announce that they have entered into a definitive arrangement agreement (the "Arrangement Agreement") under which HEXO will acquire, by way of a plan of arrangement under the Business Corporations Act (Ontario), all of Newstrike’s issued and outstanding common shares in an all-share transaction valued at approximately $263 million (the "Transaction").
Under the terms of the Arrangement Agreement, Newstrike shareholders will receive 0.06332 of a HEXO common share in exchange for each Newstrike common share held.
The Transaction has been unanimously approved by the board of directors of each of HEXO and Newstrike, and Newstrike’s board of directors recommends that its shareholders vote in favour of the Transaction.
Transaction Highlights
Capacity boost with state-of-the-art cultivation infrastructure: The Transaction gives HEXO the capacity to produce approximately 150,000 kg of high-quality cannabis annually. The Transaction also provides HEXO access to four cutting-edge production campuses totalling close to 1.8 million sq. ft. of near-term cultivation space and diversified growing and production techniques. This is in addition to HEXO’s 579,000 sq. ft. facility for a manufacturing and product development centre of excellence in Belleville, Ontario.
Diversified domestic market penetration: Combined, HEXO and Newstrike have established distribution agreements in 8 provinces including Ontario, Quebec, British Columbia, Alberta, Saskatchewan, Manitoba, Nova Scotia, and Prince Edward Island, allowing broad consumer access to HEXO’s products across Canada.
Premium indoor facility: Newstrike’s licensed indoor facility provide HEXO with access to diversified growing techniques and positions HEXO for flexibility for international exports as global cannabis markets continue to open.
Accretive synergies: The combined entity is estimated to realize annual synergies of $10 million, allowing HEXO to operate more efficiently with a commitment to continued excellence.
“We're thrilled to welcome the Newstrike team into the HEXO family. Jay Wilgar (CEO of Newstrike) and his team have built incredible relationships, including teaming up with The Tragically Hip, and they share HEXO’s vision of bringing exceptional branded cannabis experiences to adults everywhere,” said Sebastien St-Louis, CEO and co-founder of HEXO Corp “With Newstrike, we're adding talented employees and infrastructure to take HEXO to the next level on our journey to become one of the largest cannabis companies in the world. We're extremely proud of our record of execution, and today are committing to achieving over $400 million in net revenue in 2020.”
“This is the most compelling combination we see in the Canadian cannabis sector. Our strength in Ontario and English Canada clearly complements HEXO’s strong position in Quebec and creates an industry leader. The combination will deliver meaningful synergies, a stronger financial position with increased flexibility, and will position the combined company to meet growing consumer demand on a national basis. I believe this transaction is beneficial to our shareholders, customers, and employees. We look forward to working closely with the leadership team to complete this transaction," added Jay Wilgar, CEO of Newstrike.
Additional Transaction Details
The Transaction will require approval by (i) at least 66 2/3% of the votes cast by the shareholders of Newstrike; and (ii) a simple majority of the votes cast by disinterested shareholders of Newstrike, present at a special meeting of Newstrike shareholders. HEXO has entered into irrevocable hard voting support agreements with each of Newstrike’s directors and officers, along with certain other shareholders of Newstrike, representing in aggregate approximately 25% of Newstrike's issued and outstanding common shares.
The Arrangement Agreement includes customary provisions including non-solicitation provisions, subject to the right of Newstrike to accept a superior proposal in certain circumstances, with HEXO having a five business day right to match any such superior proposal for Newstrike. The Arrangement Agreement also provides for a termination fee of $7.5 million payable by Newstrike to HEXO if the Transaction is terminated in certain specified circumstances, as well as a reciprocal $1 million expense reimbursement fee to either party if the Transaction is terminated in certain other specified circumstances.
In addition to Newstrike shareholder approvals, the Transaction is subject to the receipt of certain regulatory court and stock exchange approvals and the satisfaction of other conditions customary in transactions of this nature.
Upon completion of the Transaction, existing HEXO and Newstrike shareholders would own approximately 86% and 14% of the pro forma company, respectively, on a fully diluted basis.
Further information regarding the Transaction will be included in the information circular that Newstrike will prepare, file, and mail in due course to its shareholders in connection with its special meeting to be held to consider the Transaction. The Arrangement Agreement will be filed on the SEDAR profiles of Newstrike and HEXO on the SEDAR website at www.sedar.com.
None of the securities to be issued pursuant to the Arrangement Agreement have been or will be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and any securities issued in the Arrangement are anticipated to be issued in reliance upon the exemption from such registration requirements provided by Section 3(a)(10) of the U.S. Securities Act and applicable exemptions under state securities laws. This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities.
Recommendation of Newstrike’s Board
Newstrike’s board of directors has unanimously determined, after receiving the unanimous recommendation of a special committee formed for purposes of the Transaction, and financial and legal advice, that the Transaction is in the best interests of Newstrike and its security holders, and the board of directors unanimously recommends that Newstrike’s shareholders vote in favour of the Transaction.
The board of directors of Newstrike has obtained a fairness opinion from RBC Capital Markets that, as of the date of the opinion, and subject to the assumptions, limitations, and qualifications on which such opinion is based, the consideration to be received pursuant to the Transaction is fair, from a financial point of view, to the Newstrike shareholders.
Advisors and Counsel
RBC Capital Markets is acting as the exclusive financial advisor to Newstrike. Stikeman Elliott LLP is acting as legal counsel to Newstrike. Osler, Hoskin & Harcourt LLP is acting as legal counsel to special committee of the board of directors of Newstrike.
Norton Rose Fulbright Canada LLP is acting as legal counsel to HEXO.
HEXO Financial Outlook
Based on the completion of the Transaction, for fiscal 2020, HEXO estimates net and gross revenues from the sale of cannabis in Canada will be in excess of $400 million and $479 million respectively.
This estimate is based on management’s current views, strategies, expectations, assumptions and forecasts, and has been calculated using accounting policies that are generally consistent with our current accounting policies. The estimate is derived from the expected net revenues from the sale of cannabis and cannabis products in the Canadian market alone. In addition, the estimate excludes the activity of current and future joint ventures, including HEXO’s Truss joint venture, as well as any merger and acquisition activity other than the Transaction.
This estimate is considered a financial outlook under applicable securities laws. The estimate and any other financial outlooks or future-oriented financial information included herein has been approved by management of HEXO as of the date hereof. Such financial outlooks or future-oriented financial information are provided for the purpose of presenting information about management's current expectations and goals relating to the future business of HEXO. Readers are cautioned that actual results may vary materially as a result of a number of risks, uncertainties and other factors, many of which are beyond HEXO’s control. See “Cautionary Note Regarding Forward-Looking Statements”.
About HEXO
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 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
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 further information, please contact:
HEXO:
Newstrike:
Investor Relations:
Investor Relations:
Jennifer Smith
1-877-541-9151
1-866-438-8429
ir@newstrike.ca
invest@hexo.com
Media Relations:
Media Relations:
PM Rendon
Caroline Milliard
365-773-5432
819-317-0526
prendon@up.ca
media@hexo.com
Director:
Director:
Jay Wilgar CEO, Newstrike
Adam Miron
905-844-8866
819-639-5498
HEXO Corp to acquire Newstrike Brands Ltd.
HIP~"ZYUS and Up Cannabis Sign Definitive Supply Agreement"...... https://ih.advfn.com/stock-market/TSXV/HIP/stock-news/79208616/zyus-and-up-cannabis-sign-definitive-supply-agreem
.
Agreed Hunch buddy! Inner Spirit Holdings is as well! I think ISH will seek a US listing this year soon...probably start on the OTC and move up from there glty
TSXV:HIP So undervaluesd here
Sure is All Steelers:)
These are good days to add
HIP Newstrike Brands Ltd Volume looking strong
For sure Steelers!
I doubled down a month ago...many will join the HIP move
Newstrike and Neal Brothers complete agreement to create co-branded specialty food products company https://ih.advfn.com/stock-market/TSXV/HIP/stock-news/78862794/newstrike-and-neal-brothers-complete-agreement-to
This news is creating interest here All Steelers:)
I know awesome, eh
Crazy learning curve underway across Canada Hunch buddy! But 1 month at a time more and more of the country is finally getting opened up!
"Up Cannabis Expands Distribution into Manitoba https://ih.advfn.com/stock-market/TSXV/HIP/stock-news/79011247/up-cannabis-expands-distribution-into-manitoba
Newstrike Brands' Subsidiary, Up Cannabis, Recalls Alberta Products
This is bad news... Newstrike's L.P. subsidiary just announced a recall over mold concerns...
Yes 20% of each Spirit Leaf store is gonna be devoted to a Tragically Hip Lounge woot-woot!!!
HNY Hunch buddy!
Happy New Year All_Steelers!!
Happy New Year....2019>>>>$HIP
Happy New Year!!!
That is interesting!
HIP lounges gonna be in all the Canadian Spirit Leaf MJ stores \m/
Newstrike Brands Ltd HIP Up Cannabis to Supply PEI Cannabis Management Corporation https://ih.advfn.com/stock-market/TSXV/HIP/stock-news/78872521/up-cannabis-to-supply-pei-cannabis-management-corp
Agreed Hunch buddy!
:)Awesome cup of coffee and read the news HIP
Up Cannabis to Supply PEI Cannabis Management Corporation
https://mailchi.mp/newstrike/october-17-303513?e=ed9d4faebc
GM Hunch buddy! More great HIP news today!
Good morning Doog and all you HIPpies
Newstrike and Neal Brothers complete agreement to create co-branded specialty food products company
https://mailchi.mp/newstrike/october-17-303509?e=ed9d4faebc
Crazy buddy...good for HIP choo-choo \m/
HIP only GREEN Close out there today
"Newstrike's Up Cannabis Inc. Receives Licence from Health Canada to Commence Sales of Product Cultivated at its Niagara Facility"
Monday, November 12, 2018, 8:00 AM ET
TORONTO, Nov. 12, 2018 /CNW/ - Newstrike Brands Ltd. (TSX-V:HIP) ("Newstrike" or the "Company"), is pleased to announce that its wholly-owned subsidiary Up Cannabis Inc. ("Up Cannabis"), has had its licences issued under the Access to Cannabis for Medical Purposes Regulations (ACMPR) successfully migrated to licences under the Cannabis Act and its regulations for both its Brantford and Niagara Facilities. This migrated licence issued for the Niagara greenhouse adds the ability to sell cannabis in all acceptable forms produced within the facility.
"The migrated licences from Health Canada allow us to bring to market cannabis products cultivated at our flagship Niagara Facility," said Jay Wilgar, CEO of Newstrike and Up Cannabis. "As we complete the 240,000 square foot retrofit of the Niagara Facility later this year and expand to 455,000 square feet in 2019, we are in a great position to support our provincial partners, meet increasing demand from consumers and expand the Up Cannabis brand."
Up Cannabis products are currently available through licenced provincial retail channels throughout Canada. For more information on where to find Up Cannabis products, please refer to https://up.ca/pages/where-to-buy.
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
Forward-Looking Information
This news release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Newstrike to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements related to construction, production output or sales. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements contained in this news release are made as of the date of this release and, accordingly, are subject to change after such date. Newstrike does not assume any obligation to update or revise any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, except as required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Newstrike Brands Ltd.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/November2018/12/c3222.html/
CONTACT:
Newstrike Investor Relations: 1-877-541-9151, ir@newstrike.ca; Jason Redman, Chief Financial Officer, (905) 844-8866
/Web site: http://www.newstrikeresources.com/
Copyright CNW Group 2018
(END) Dow Jones Newswires
November 12, 2018 08:00 ET (13:00 GMT)
See All News & Commentary
HIP charts show a drop of 50% in 3 months comparatively this is a big drop in the stock price. Where is the bottom?
Sector consolidation continues as expected...probably be mid-January for the buzz to start up again!
Agreed Hunch, gonna be a BEAST over these next few years and won't be flying under the radar for too much longer imo glty
HIP is way underpriced imo Doog
Agreed Hunch buddy! 1 step at a time we're getting there!
Newstrike’s Up Cannabis Inc. Receives Licence from Health Canada to Commence Sales of Product Cultivated at its Niagara Facility
https://mailchi.mp/newstrike/october-17-303497?e=ed9d4faebc
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