Shares of HEXO (NYSE: HEXO) climbed 22.6% on Tuesday after the cannabis company announced it agreed to purchase fellow Canadian weed maker Zenabis Global (OTC: ZBISF).
The all-stock deal values Zenabis at roughly 235 million Canadian dollars ($185 million). HEXO says acquiring Zenabis will strengthen its position in Canada's recreational cannabis market and give it a beachhead into Europe's medical marijuana industry.
HEXO and Zenabis Global are joining forces. Image source: Getty Images.
Source Fool.com