TORONTO, May 22, 2019 /CNW/ - Newstrike Brands Ltd.
(TSX-V:HIP) ("Newstrike" or the "Company") today
announced that it has obtained a final court order from the Ontario
Superior Court of Justice approving the previously announced plan
of arrangement under the Business Corporations Act
(Ontario), in 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").
Receipt of the final order follows the annual and special
meeting of shareholders of Newstrike held on May 17, 2019, where shareholders approved the
Arrangement by a special resolution.
Pursuant to the Arrangement, holders of common shares of
Newstrike will receive 0.06332 shares of HEXO for each common share
of Newstrike held. Closing of the Arrangement remains subject to
the satisfaction (or waiver) of other customary closing conditions,
including final approval by the TSX Venture Exchange. Subject to
satisfaction of these closing conditions, it is anticipated that
the Arrangement will be completed on or around May 24, 2019.
About Newstrike and Up Cannabis
Newstrike is the parent company of Up Cannabis Inc., a licensed
producer of cannabis that is licensed to both cultivate and sell
cannabis in all acceptable forms. Newstrike, through Up Cannabis
and together with select strategic partners, including Canada's iconic musicians The Tragically Hip,
is developing a diverse network of high quality cannabis brands.
For more infcormation, visit http://www.up.ca or
http://www.newstrike.ca
Forward-Looking Information
This news release contains forward-looking statements.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Newstrike to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Forward-looking
statements in this news release include, but are not limited to:
statements with respect to the completion of the Transaction and
the timing for its completion; the satisfaction of closing
conditions which include, without limitation (i) certain
termination rights available to the parties under the Arrangement
Agreement, (ii) HEXO obtaining the necessary approvals from the TSX
and the NYSE American for the listing of its common shares and
former Newstrike warrants in connection with the Transaction, (iii)
Newstrike receiving approval for the delisting of its shares on the
TSX-V and (iv) other closing conditions, including compliance by
HEXO and Newstrike with various covenants contained in the
Arrangement Agreement. Often, but not always, forward-looking
statements can be identified by the use of words such as "plans",
"expects" or "does not expect", "is expected", "estimates",
"intends", "anticipates" or "does not anticipate", or "believes",
or variations of such words and phrases or state that certain
actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved. Accordingly, readers should
not place undue reliance on the forward-looking statements and
information contained in this press release. Since forward-looking
statements and information address future events and conditions, by
their very nature they involve inherent risks and
uncertainties.
Actual results could differ materially from those currently
anticipated due to a number of factors and risks. Readers are
cautioned that the foregoing list of factors is not exhaustive. The
forward-looking statements contained in this news release are made
as of the date of this release and, accordingly, are subject to
change after such date.
Newstrike does not assume any obligation to update or revise any
forward-looking statements, whether written or oral, that may be
made from time to time by us or on our behalf, except as required
by applicable law.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Newstrike Brands Ltd.