Newstrike Brands Ltd (fka HIP)

[Dust2332]

Didn't matter that we voted NO!


Newstrike Announces Voting Results for Annual and Special Meeting and Shareholder Approval of Arrangement Resolution with HEXO

TORONTO, May 17, 2019 /CNW/ - Newstrike Brands Ltd. (TSX-V:HIP) ("Newstrike" or the "Company") is pleased to announce that, at the Annual and Special Meeting (the "Meeting"), Newstrike shareholders overwhelmingly voted in favour of  the arrangement resolution (the "Arrangement Resolution") under which HEXO Corp. ("HEXO") (TSX: HEXO; NYSE-A: HEXO) will acquire all of Newstrike's issued and outstanding common shares by way of a plan of arrangement under the Business Corporations Act (Ontario) (the "Arrangement").

The Arrangement Resolution required 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.

The Arrangement Resolution was approved by approximately 97.6% of the votes cast by all of the Newstrike shareholders eligible to vote at the Meeting. The Arrangement Resolution was approved by approximately 97.1% of the votes cast by all of the disinterested Newstrike shareholders eligible to vote at the Meeting.

Completion of the Arrangement Resolution remains conditional on approval by the Ontario Superior Court of Justice (the "Court") and certain other closing conditions. The application for the final order from the Court is scheduled for May 22, 2019. Assuming that the conditions to closing are satisfied or waived, it is expected that the Arrangement will be completed on or around May 24, 2019.

Following completion of the Arrangement, Newstrike will become a wholly owned subsidiary of HEXO, and will cease to be a reporting issuer and its shares will be delisted from the TSXV.

At the Meeting, Newstrike shareholders also approved the appointment KPMG LLP as auditors and the following directors were re-elected: James (Jay) Wilgar, Peter Hwang, Liam Scott, Stephen Smith, Nik Van Haeren and Brett Whalen.

Further information about the Arrangement is set forth in the materials prepared by Newstrike in respect of the Meeting which were mailed to shareholders of Newstrike. These materials as well as the full voting results on all matters voted at the Meeting will be filed under Newstrike's profile on SEDAR at www.sedar.com.