TORONTO, May 22, 2019 /CNW/ - Newstrike Brands Ltd. (TSX-V:HIP) ("Newstrike" or the "Company") today announced that it has obtained a final court order from the Ontario Superior Court of Justice approving the previously announced plan of arrangement under the Business Corporations Act (Ontario), in which HEXO Corp. ("HEXO") (TSX: HEXO; NYSE-A: HEXO) will acquire all of Newstrike's issued and outstanding common shares by way of a plan of arrangement under the Business Corporations Act (Ontario) (the "Arrangement").

Receipt of the final order follows the annual and special meeting of shareholders of Newstrike held on May 17, 2019, where shareholders approved the Arrangement by a special resolution.

Pursuant to the Arrangement, holders of common shares of Newstrike will receive 0.06332 shares of HEXO for each common share of Newstrike held. Closing of the Arrangement remains subject to the satisfaction (or waiver) of other customary closing conditions, including final approval by the TSX Venture Exchange. Subject to satisfaction of these closing conditions, it is anticipated that the Arrangement will be completed on or around May 24, 2019.

About Newstrike and Up Cannabis

Newstrike is the parent company of Up Cannabis Inc., a licensed producer of cannabis that is licensed to both cultivate and sell cannabis in all acceptable forms. Newstrike, through Up Cannabis and together with select strategic partners, including Canada's iconic musicians The Tragically Hip, is developing a diverse network of high quality cannabis brands. For more infcormation, visit http://www.up.ca or http://www.newstrike.ca

Forward-Looking Information

This news release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Newstrike to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements in this news release include, but are not limited to: statements with respect to the completion of the Transaction and the timing for its completion; the satisfaction of closing conditions which include, without limitation (i) certain termination rights available to the parties under the Arrangement Agreement, (ii) HEXO obtaining the necessary approvals from the TSX and the NYSE American for the listing of its common shares and former Newstrike warrants in connection with the Transaction, (iii) Newstrike receiving approval for the delisting of its shares on the TSX-V and (iv) other closing conditions, including compliance by HEXO and Newstrike with various covenants contained in the Arrangement Agreement. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties.

Actual results could differ materially from those currently anticipated due to a number of factors and risks. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements contained in this news release are made as of the date of this release and, accordingly, are subject to change after such date.

Newstrike does not assume any obligation to update or revise any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, except as required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Newstrike Brands Ltd.

For further information: Newstrike Investor Relations, 1-877-541-9151, [email protected]; Jay Wilgar, CEO, Newstrike Brands, (905) 844-8866