Canadian cannabis producer Tilray (TLRY) on March 3 announced an alliance with struggling rival Hexo (HEXO), a move that could give Tilray a big stake in Hexo and help Hexo untangle its debt amid intense competition. So is there any reason to buy TLRY stock now?
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The move is Tilray’s latest pact with a cannabis operator trying to turn itself around, after the industry in Canada and in the U.S. racked up losses and overexpanded. Tilray last year also worked out a deal that could eventually hand it a stake in MedMen, a California-based cannabis retailer that has also been trying to get its finances in order.
Hexo is trying to shrink or restructure its debt load, cut production costs and align cultivation with demand. On Monday, Hexo acknowledged an “event of default” after failing to hit the profitability target attached to that debt. However, Tilray’s agreement to buy up that…
