Tilray Brands (NASDAQ: TLRY) shook up the cannabis sector with its third-quarter fiscal 2023 earnings report last night. But it wasn't the results that many were focused on, as both Tilray and fellow Canadian cannabis company (NASDAQ: HEXO) shares dropped today. As of 11:15 a.m. ET, Tilray shares were lower by 7.1%, while Hexo stock was plunging by 26.5%. The moves were spurred by the announcement of a deal for Tilray to acquire Hexo in an all-stock transaction.

News of that deal also moved Canadian peer Organigram Holdings (NASDAQ: OGI) shares this morning. Organigram's stock spiked nearly 6% on the buyout news. Then it lost that gain and was down 1.7% by that same time. 

The big drop in Hexo shares was because Tilray is buying that company for about $56 million, while Hexo was trading at a market cap of over $70 million prior to the announced deal. For a bit more perspective, though, Hexo shares had surged higher prior to the announcement. The purchase price of about $1.20 per share is not far from where Hexo stock started the week at $1.26 per share. 

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Source Fool.com