GATINEAU, Quebec, April 24, 2019 (GLOBE NEWSWIRE) -- HEXO Corp ("HEXO") (TSX: HEXO; NYSE-A: HEXO) today announced that it has entered into irrevocable hard voting support agreements with shareholders of Newstrike Brands Ltd. (“Newstrike”) (TSX-V: HIP) representing in aggregate approximately 38.3% of Newstrike's issued and outstanding common shares in connection with 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 (the "Transaction").
“We’re pleased to have secured hard lock up support for 38.3% of Newstrike shareholders since announcing the agreement,” said Sebastien St-Louis, HEXO’s CEO and co-founder. “This is a great recognition of the extreme alignment between both companies’ management and boards, as well as a vote of confidence in HEXO’s vision for the future. We are eager for the Newstrike family to embark on this journey with us!”
Jay Wilgar, CEO of Newstrike added: “Our recent respective quarterly financial reports demonstrate the collective potential of our combined organizations as one of Canada’s largest licensed producers. We look forward to working closely with the HEXO team to leverage the strengths of our two businesses, create synergies and accelerate value creation for both of our shareholder bases. Moreover, our strategic partners The Tragically Hip and Neal Brothers Foods are both supportive of the proposed combination.”
