HEXO Corp. Closes US$25.0 Million Registered Direct Offering
January 02 2020 - 6:30AM
HEXO Corp. (“HEXO” or the “Company”) (TSX: HEXO; NYSE: HEXO) today
announced it has closed its previously announced registered
direct offering with institutional investors (the “Offering”).
Under the Offering, the Company sold 14,970,062 common shares at an
offering price of US$1.67 per share for gross proceeds of US$25.0
million before deducting fees and other estimated offering
expenses. The Company also issued to the investors common share
purchase warrants to purchase 7,485,032 common shares of the
Company. The warrants will have a five year-term and an exercise
price of US$2.45 per share. A.G.P./Alliance Global Partners acted
as sole placement agent for the Offering.
The Offering was made in the United States only
under the Company’s amended and restated short form base shelf
prospectus dated December 14, 2018 (the “Base Shelf Prospectus”),
filed with the securities regulatory authorities in each of the
provinces and territories of Canada, and the corresponding
registration statement on Form F-10 (the “Registration
Statement”) filed by the Company with the U.S. Securities and
Exchange Commission (“SEC”) under the U.S./Canada
Multijurisdictional Disclosure System (“MJDS”). A prospectus
supplement (the “Supplement”) to the Base Shelf Prospectus was
filed on a non-offering basis with applicable securities regulatory
authorities in Canada and with the SEC as part of the Registration
Statement under the MJDS. Copies of the Supplement and the Base
Shelf Prospectus are or will be available on SEDAR at www.sedar.com
and copies of the Supplement and the Registration Statement are or
will be available 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.
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. 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. As one of the largest licensed
cannabis companies in Canada, HEXO Corp. operates facilities in
Ontario and Quebec. The Company is also expanding internationally
and has a foothold in Greece to establish a Eurozone processing,
production and distribution centre. 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
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 Base Shelf Prospectus and the Registration Statement
and the Company’s most recent Annual Information Form and other
continuous disclosure filings incorporated by reference in the Base
Shelf Prospectus and the Registration Statement, 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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