HEXO Corp (“HEXO” or the “Company”) (TSX: HEXO; NYSE: HEXO) today announced the pricing of its previously announced overnight marketed public offering (the “Offering”) of units of the Company (the “Units”). The underwriters for the Offering have agreed to purchase 47,457,628 Units at a price of US$2.95 per Unit for total gross proceeds to the Company of approximately US$140 million, before deducting underwriting commissions and Offering expenses.
Each Unit will be comprised of one common share of the Company (a “Common Share”) and one half of one common share purchase warrant of the Company (each full common share purchase warrant, a “Warrant”). Each Warrant will be exercisable to acquire one common share of the Company (a “Warrant Share”) for a period of five years following the closing date of the Offering at an exercise price of US$3.45 per Warrant Share, subject to adjustment in certain events.
A.G.P./Alliance Global Partners and Cantor Fitzgerald Canada Corporation are acting as lead underwriters and joint bookrunners for the Offering, together with ATB Capital Markets Inc. which is acting as co-manager for the Offering.
In addition, the Company has granted to the underwriters a 30-day option to purchase up to an additional 7,118,644 Units offered in the Offering on the same terms and conditions.
The Company expects to use the net proceeds from the Offering to satisfy a portion of the cash component of the purchase price payable to the Redecan shareholders on closing of the Redecan acquisition and for expenditures in relation to the Company’s U.S. expansion plans. The Offering is expected to close on or about August 24, 2021 and will be subject to market and other customary conditions, including approval of the Toronto Stock Exchange.
The Offering is being made pursuant to a prospectus supplement (the “Prospectus Supplement”) to the Company’s amended and restated short form base shelf prospectus dated May 25, 2021 (the “Base Shelf Prospectus”) to be filed 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 (the “SEC”) 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, following filing thereof, and the Base Shelf Prospectus will be available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. Copies of the Prospectus Supplement, following filing thereof, and the Base Shelf Prospectus may also be obtained, when available, from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.com. Copies may also be obtained, when available, from Cantor Fitzgerald Canada Corporation in Canada, by emailing ecmcanada@cantor.com, or Cantor Fitzgerald & Co. in the U.S., by emailing prospectus@cantor.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.
