Hexo Corp (TSX: HEXO) shareholders have formally approved the proposed acquisition by Tilray Brands (TSX: TLRY). The approval was granted yesterday at the firms special meeting of shareholders.

The transaction brings to an end the story of yet another cannabis company in the Canadian landscape as consolidation continues in an effort to achieve profitability. The deal will see shareholders receive 0.4352 shares of Tilray for every common share of Hexo held.

READ: Hexo To Be Acquired By Tilray For US$56.0 Million

The arrangement was approved by 93.7% of all votes cast at the meeting.

Hexo will now seek a final order from the Ontario Superior Court of Justice to proceed with the transaction, with the final closing of the arrangement slated to be completed by June 30.

Third quarter decline

At the same time, Hexo last night reported its fiscal third quarter financial results, posting a decline of net revenues of 11% on a quarter over quarter basis, and a 53% decline on a year over year basis, falling to $21.6 million.

Cost of goods sold meanwhile exceeded revenues at $29.1 million, leading to a gross loss before fair value adjustments of $7.5 million. Things got no better from here, with total operating expenses hitting $111.4 million, lead by impairment of property, plant and equipment of $54.9 million and impairments on intangible assets of $18.8 million, presumably in an effort to clean up the balance sheet before merging with Tilray. Transaction costs added a further $19.7 million to the operating expenses.

Overall, the company posted a loss from operations of $120.7 million, leading to a net loss of $117.2 million after certain tax recoveries. Adjusted EBITDA meanwhile came in at negative $3.9 million.

Hexo last traded at $1.00 on the TSX.

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