Tilray chief executive officer Irwin Simon told The Globe the company “probably will not convert them any time soon,” given one of the terms of the deal: Hexo will pay 10-per-cent interest annually to Tilray, adding up to about $20-million before taxes each year.
The deal comes amid a market that is ripe for consolidation.
The deal will also help Ottawa-based Hexo reduce its balance sheet after a year of weighty debt repayments accrued as it made several large acquisitions.