HEXO Corp. Closes $46 Million Underwritten Public Offering
April 13 2020 - 7:58AM
HEXO Corp. (“
HEXO”, or the
“
Company”) (TSX: HEXO; NYSE: HEXO) today announced
the closing of its previously announced underwritten public
offering (the “
Offering”) for total gross proceeds
to the Company of approximately C$46 million. The Company sold
59,800,000 units of the Company (the “
Units”) at a
price of C$0.77 per Unit under the Offering, including 7,800,000
Units sold pursuant to the exercise in full of the underwriters’
over-allotment option.
Each Unit is comprised of one common share of the Company and
one common share purchase warrant of the Company. Each warrant is
exercisable to acquire one common share of the Company for a period
of 5 years following the closing date of the Offering at an
exercise price of C$0.96 per share, subject to adjustment in
certain events.
Canaccord Genuity Corp. and Canaccord Genuity LLC acted as the
lead underwriters for the Offering, together with a syndicate of
underwriters including Alliance Global Partners and AltaCorp
Capital Inc.
The Company expects to use the net proceeds from the Offering
for working capital and other general corporate purposes.
In connection with the Offering, the Company filed a prospectus
supplement dated April 8, 2020 (the "Prospectus
Supplement") to the Company’s amended and restated short
form base shelf prospectus dated December 14, 2018 (the
“Base Shelf Prospectus”) with the securities
commissions or similar securities regulatory authorities in each of
the provinces and territories of Canada, and with the U.S.
Securities and Exchange Commission as part of the Company’s
registration statement on Form F-10 (the “Registration Statement”)
under the U.S./Canada Multijurisdictional Disclosure System.
Copies of the Prospectus Supplement and the Base Shelf
Prospectus are available on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov and a copy of the Registration Statement is available
on EDGAR at www.sec.gov. Copies of the Prospectus Supplement, the
Base Shelf Prospectus and the Registration Statement may also be
obtained in Canada from Canaccord Genuity Corp., 161 Bay Street,
Suite 3000, Toronto, ON M5J 2S1 and in the United States from
Canaccord Genuity LLC, 99 High Street, Suite 1200, Boston,
Massachusetts 02110, Attn: Syndicate Department, by telephone at
(617) 371-3900, or by email at prospectus@canaccordgenuity.com.
No securities regulatory authority has either approved or
disapproved of the contents of this press release. This press
release is for information purposes only and shall not constitute
an offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of these securities in any state or jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any
such state or jurisdiction.
About HEXO
HEXO Corp is an award-winning consumer packaged goods cannabis
company that creates and distributes innovative products to serve
the global cannabis market. The Company serves the Canadian
adult-use markets under its HEXO Cannabis and Up Cannabis brands,
and the medical market under HEXO medical cannabis. For more
information please visit hexocorp.com.
Forward Looking Statements
This press release contains forward-looking information and
forward-looking statements within the meaning of applicable
securities laws (“forward-looking statements”),
including statements regarding the use of proceeds from the
Offering. Forward-looking statements are based on certain
expectations and assumptions and are subject to known and unknown
risks and uncertainties and other factors that could cause actual
events, results, performance and achievements to differ materially
from those anticipated in these forward-looking statements,
including that the Company’s use of proceeds of the Offering may
differ from those indicated. Forward-looking statements should not
be read as guarantees of future performance or results.
A more complete discussion of the risks and uncertainties facing
the Company appears in the Prospectus Supplement, the Base Shelf
Prospectus and the Registration Statement and in the Company’s
Annual Information Form and other continuous disclosure filings,
which are available on SEDAR at www.sedar.com and EDGAR at
www.sec.gov. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
of this press release. The Company disclaims any intention or
obligation, except to the extent required by law, to update or
revise any forward-looking statements as a result of new
information or future events, or for any other reason.
Investor Relations: Jennifer Smith
1-866-438-8429 invest@HEXO.com www.hexocorp.com
Media Relations: (819) 317-0526
media@hexo.com
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