HEXO Corp entered into agreements with Tilray Brands and KAOS Capital's affiliate, advancing its "The Path Forward" strategy. HEXO will recapitalize its balance sheet and expects the transactions to close by May 2022. The partnership aims to achieve up to C$110 million (U.S.$80 million) in cost savings within two years, shared equally between HEXO and Tilray. Tilray Brands will purchase HEXO's amended senior secured convertible note, originally worth C$265 million (US$193 million), at a discount, with a minimum closing principal of C$220 million (US$160 million). The Standby Agreement allows HEXO to draw up to C$5 million monthly from KAOS Capital, totaling C$180 million. These strategic moves should enhance HEXO's operational flexibility, reduce debt, and increase liquidity for growth. The closing conditions include approvals from the TSX, Nasdaq, HEXO shareholders, and regulatory bodies. Lazard and Norton Rose Fulbright Canada LLP served as advisors to HEXO; Canaccord Genuity Corp and DLA Piper (Canada) LLP to Tilray; and Bennett Jones LLP to KAOS Capital.