Pretty easy to replicate.
On the Adaxes server, you can use Powershell to send to that SMTP server so we know it's not a firewall issue:
$myCredential = Get-Credential -Username "it-noreply@contoso.com" -Message "Enter your password"
Send-MailMessage -From "it-noreply@contoso.com" -To "ngb@contoso.com" -Subject "test" -body "test" -SmtpServer smtp-hve.office365.com -UseSsl -Port 587 -Credential $myCredential
I've got a packet capture of both the Adaxes attempt and the Powershell success that I can send to you in an email. The packet capture shows the Adaxes server doesn't issue either an EHLO or a STARTTLS command.