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New owner for Kirkland Lake cannabis grower

HEXO closes $50-million acquisition of 48North Cannabis
Delshen Kirkland Lake
48North's Kirkland Lake indoor growing facility (Supplied)

A Kirkland Lake licensed cannabis grower is under new ownership.

48North Cannabis announced Aug 26 that it has obtained the final court order approving its sale to Ottawa-based HEXO, one of the largest licensed cannabis companies in Canada, in a previously announced $50-million deal.

48North shareholders approved the transaction on Aug. 17.

TSX and Nasdaq-traded HEXO operates facilities in Ontario and Quebec with a combined two-million-square-feet of space.

HEXO will acquire all of 48North’s issued and outstanding common shares by way of a plan of arrangement first announced on May 17.

48North operates two indoor facilities in Ontario; one outside Kirkland Lake, one near Brantford.

Its 40,000-square-foot Delshen cultivation facility at Kirkland Lake is licensed to sell cannabis as well as produce and extract cannabis oils. The facility produces 2,500 kilograms of dried cannabis flower annually.

There were plans to add 200,000 square feet of production space on the property to allow for production of an additional 40,000 kilograms of dried cannabis flower each year.

HEXO has corporate aims to be one of Canada's top three adult-use cannabis players.

The grower and manufacturer is in expansion mode with the recent acquisition of Zenabis Global, a Vancouver medical and recreational producer in June. HEXO is also in the final stages of acquiring Redecan, a Fenwick, Ont.-based greenhouse grower that is Canada's largest privately owned cannabis producer.