Cannabis co HEXO jumps on deal to sell debt of up to $211 mln to Tilray

American Cannabis

03/03/2022 14:09

** Shares of cannabis co HEXO  HEXO.O  jump 19%, while rival
Tilray  TLRY.O  gains 0.3% in premarket trading
    ** TLRY agreed to buy up to $211 mln of HEXO's debt, giving
it a right to pick a significant equity stake in its troubled
rival 
    ** Deal gives HEXO more favorable debt repayment terms,
potentially rescuing the company from years-long financial
turmoil  urn:newsml:reuters.com:*:nL3N2V60QB
    ** One of seven brokerages rate HEXO "buy", five "hold" and
one "sell"; their median PT is $4.73 - Refinitiv data
    ** Up to last close, HEXO and TLRY had fallen 18% and 17%,
respectively, this year

 (Reporting by Bansari Mayur Kamdar in Bengaluru)
 ((BansariMayur.Kamdar@thomsonreuters.com;))