Tilray CEO says Hexo purchase will help grow Canadian cannabis industry - BNN Bloomberg

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The chief executive officer of Tilray Brands Inc. said the acquisition of competitor Hexo Corp. will help position his company to lead Canada’s cannabis industry.

“It was the right time for these two companies to come together,” Irwin Simon said in a television interview on Tuesday, a day afterTilray is paying US$56 million to buy the remaining outstanding Hexo stock, on top of a US$173 million secured convertible note it purchased from a former Hexo creditor last summer.

He said the cannabis market in Canada needs a bigger name to lead change, arguing the current landscape is oversaturated and rife with regulatory missteps such as high excise tax payments to the government. He said the combined companies will have the facilities and resources they need to continue growing.

Echoing similar comments made by other Canadian cannabis executives, Simon also took aim at regulation of his industry, calling for changes to taxation on cannabis companies. “Canada was first country in the world to legalize adult-use cannabis, and with that we should lead and teach other countries, what's the right way to do it” he said. “I think that's where Tilray will take that position.”

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