HEXO Receives NYSE Listing Notification
May 13 2020 - 5:00PM
HEXO Corp. (“
HEXO”, or the
“
Company”) (TSX: HEXO; NYSE: HEXO) today announced
that it received notification from the New York Stock Exchange (the
“
NYSE”) on April 7, 2020 that the Company was no
longer in compliance with the NYSE's US$1.00 share price continued
listing standard (the “
Price Listing Standard”) as
a result of the average closing price of its common shares on the
NYSE falling below US$1.00 for a consecutive 30 trading-day
period. The issuance of the notification was not discretionary and
is sent automatically when a listed company’s share price falls
below the Price Listing Standard.
Under the NYSE’s rules, the Company can regain compliance with
the Price Listing Standard and avoid delisting if, within six
months from the date of the NYSE notification, its common shares
have a closing price on the last trading day of any calendar month
and a concurrent 30 trading day average closing price of at
least US$1.00 per share. If the Company has not regained
compliance by the end of this six month cure period, the NYSE will
commence suspension and delisting procedures. In response to the
COVID-19 outbreak, the NYSE made a rule filing with the SEC which
became effective on April 21, 2020 for relief on the Price Listing
Standard which provides for an extension of the cure period until
June 30, 2020. As a result of this ruling filing, the Company
currently has until December 16, 2020 to restore compliance with
the Price Listing Standard. The Company expects to restore
compliance with the Price Listing Standard, and to continue to
maintain access to a broad range of investors, equity capital and
trading liquidity through its NYSE listing. The Company is
considering options to regain compliance, which may include a share
consolidation, if necessary. The Common Shares will continue to be
listed and traded on the NYSE during the applicable cure period,
subject to continued compliance with the NYSE’s other continued
listing standards, under the symbol “HEXO”, but the NYSE has
assigned a “.BC” indicator to the symbol to denote that the Company
is below the NYSE’s Price Listing Standard. This indicator will be
removed at such time as the Company is deemed compliant with the
NYSE’s Price Listing Standard.Non-compliance with the Price Listing
Standard does not affect the Company's business operations or its
reporting requirements to any securities regulatory authorities,
nor does it affect the continued listing and trading of the Common
Shares on the Toronto Stock Exchange or breach or cause an event of
default under any of the Company's agreements with its lenders.
About HEXO Corp
HEXO Corp is an award-winning consumer packaged goods cannabis
company that creates and distributes innovative products to serve
the global cannabis market. Through its hub and spoke business
strategy, HEXO Corp is partnering with Fortune 500 companies,
bringing its brand value, cannabinoid isolation technology,
licensed infrastructure and regulatory expertise to established
companies, leveraging their distribution networks and
capacity. The Company serves the Canadian adult-use markets
under its HEXO Cannabis, Up Cannabis and Original
Stash brands, and the medical market under HEXO medical
cannabis. For more information please
visit hexocorp.com.
Forward-Looking Statement
This press release contains forward-looking information and
forward-looking statements within the meaning of applicable
securities laws (“forward-looking statements”),
including statements relating to but not limited to: HEXO’s
expectation to regain compliance with the Price Listing Standard;
that if at the expiration of the applicable cure period the HEXO
has not regained compliance, the NYSE will commence suspension and
delisting procedures; and that non-compliance with the NYSE’s price
listing standard does not affect HEXO’s business operations, its
reporting requirements to any securities regulatory authorities or
the continued listing and trading of HEXO’s Common Shares on the
Toronto Stock Exchange. 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. 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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