HEXO Corp. Announces Final Closing of Early Conversion Option for Debentures
June 30 2020 - 5:16PM
HEXO Corp. (“
HEXO”, or the
“
Company”) (TSX: HEXO; NYSE: HEXO) today announced
the final closing of its previously announced early conversion
option (the “
Early Conversion Option”) in respect
of $29.86 million aggregate principal amount of its outstanding $70
million aggregate principal amount of 8% unsecured convertible
debentures maturing December 5, 2022 (the
“
Debentures”). Under the final closing, $6,265,000
aggregate principal amount of Debentures was converted into
7,831,250 units of the Company (the “
Conversion
Units”) at a price of $0.80 per Conversion Unit. Together
with the $23,595,000 aggregate principal amount of Debentures
converted into 29,493,750 Conversion Units in an initial closing
on June 10, 2020, the Company has converted a total of $29,860,000
aggregate principal amount of Debentures into 37,325,000 Conversion
Units under the Early Conversion Option.
Each Conversion Unit consisted of one common
share of the Company (a “Conversion Share”) and
one-half of one common share purchase warrant of the Company
(each whole warrant, a “Conversion Warrant”).
Each Conversion Warrant is exercisable by the holder to purchase
one common share of the Company (a “Conversion Warrant
Share”) at an exercise price of $1.00 per share for a
period of three years from issuance. The Conversion Shares are
subject to restrictions against resale for 12 months from issuance
as part of the terms of the Early Conversion Option. In addition,
the Conversion Warrants and the common shares of the Company
issuable upon exercise of the Conversion Warrants are subject to
resale restrictions for four months and one day following issuance
under applicable securities laws.
The Early Conversion Option does not affect the
rights of those Debenture holders who have not accepted it.
Debentureholders who did not accept the Early Conversion Option
are not entitled to the benefit of the Early Conversion Option
and will not receive the Conversion Units issuable upon conversion
of the Debentures subject to the Early Conversion Option, and
retain their full rights under the Debentures including their
existing conversion rights.
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, Up Cannabis
and Original Stash 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 timing
and completion of the Early Conversion Option. 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 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: invest@HEXO.com
www.hexocorp.com
Media Relations: (819) 317-0526
media@hexo.com
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