HEXO Corp. announces proposed public offering of common shares
January 21 2019 - 04:10PM
HEXO Corp. (“HEXO” or the “Company”) (TSX:
HEXO)
today announced that it will be filing a preliminary prospectus
supplement (the “Preliminary Supplement”) to its amended and
restated short form base shelf prospectus dated December 14, 2018
(the “Base Shelf Prospectus”) relating to a proposed marketed
public offering of common shares of the Company for gross proceeds
of approximately C$50 million (the “Offering”). The Offering will
be priced in the context of the market with the price and total
size of the Offering to be determined at the time of entering into
an underwriting agreement for the Offering.
The Company will also grant the underwriters for
the Offering an over-allotment option to purchase up to an
additional 15% of the common shares to be sold pursuant to the
Offering. The over-allotment option will be exercisable for a
period of 30 days after closing.
The Company will use the net proceeds from the
offering for general corporate purposes, including funding the
Company’s global growth initiatives and research and development to
further advance the Company’s innovation strategies.
The Offering is being made through a syndicate
of underwriters led by CIBC Capital Markets and BMO Capital
Markets. The Company’s common shares are traded on the Toronto
Stock Exchange (“TSX”) in Canada and have been approved for listing
and are expected to start trading on the NYSE American Exchange
(“NYSE American”) in the United States on January 23, 2019, in each
case under the ticker “HEXO”. Closing of the Offering will be
subject to a number of customary conditions including, but not
limited to, the listing of the common shares on the TSX and the
NYSE American and any required approvals of each exchange.
The Preliminary Supplement will be filed with
the securities commissions or similar securities regulatory
authorities in each of the provinces and territories of Canada. The
Preliminary Supplement will also be filed 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. The
Preliminary Supplement, the Base Shelf Prospectus and the
Registration Statement contain important detailed information about
the Offering. Copies of the Preliminary Supplement and the Base
Shelf Prospectus will be found on SEDAR at www.sedar.com and on
EDGAR at www.sec.gov, and a copy of the Registration Statement will
be found on EDGAR at www.sec.gov. 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.
Copies of the Preliminary Supplement, the Base
Shelf Prospectus and the Registration Statement may also be
obtained in Canada from CIBC Capital Markets, 22 Front Street West,
Mailroom, Toronto, ON, M5J 2W5, by telephone at (416) 956-3636, by
email at michelene.dougherty@cibc.ca or from BMO Capital Markets,
Brampton Distribution Centre c/o The Data Group of Companies, 9195
Torbram Road, Brampton, Ontario, L6S 6H2, by telephone at
905-791-3151 Ext. 4312 / 4322, or by email at
torbramwarehouse@datagroup.ca and in the United States from CIBC
Capital Markets, 425 Lexington Avenue, 5th floor, New York, NY, by
telephone at (800) 282-0822, by email at useprospectus@cibc.com or
from BMO Capital Markets Corp., Attn: Equity Syndicate Department,
3 Times Square, 25th Floor, New York, NY 10036 (Attn: Equity
Syndicate), or by telephone at (800) 414-3627, or by email at
bmoprospectus@bmo.com.
About HEXO
HEXO Corp. is an award-winning consumer-packaged
goods cannabis company that creates and distributes award-winning
products to serve the global cannabis market. As one of the largest
licensed cannabis companies in Canada, HEXO Corp. operates with
over 1.3 million sq. ft. of facilities in Ontario and Quebec and a
foothold in Greece with plans to establish a Eurozone processing,
production and distribution centre. We serve the Canadian adult-use
market under the HEXO brand while continuing to provide our medical
cannabis clients with consistent access to Hydropothecary medical
cannabis products.
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 Offering and its terms, timing, potential
completion and the use of proceeds of the Offering as well as
statements regarding the Company’s future business plans.
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 Offering may not be completed on the terms indicated or at
all, the Company may be unsuccessful in satisfying the conditions
to closing of the Offering and 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 and the Base Shelf Prospectus and the Company’s Annual
Information Form and other continuous disclosure filings
incorporated by reference in the Base Shelf Prospectus, 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:
Kathy Chow1-866-438-8429invest@hexo.com
Media Relations:
Sarah Brownmedia@hexo.com
Director:Adam Miron819-639-5498
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