HEXO Corp. Announces C$34,500,000 At-the-Market Offering Program
June 17 2020 - 7:30AM
HEXO Corp. (“
HEXO”, or the
“
Company”) (TSX: HEXO; NYSE: HEXO) today announced
that it has established an at-the-market equity program (the
“
ATM Program”) that allows the Company to issue up
to C$34,500,000 (or its U.S. dollar equivalent) of common shares
(the “
Common Shares”) from treasury to the public
from time to time, at the Company’s discretion. Any Common Shares
sold through the ATM Program will be sold through the Toronto Stock
Exchange (the “
TSX”), the New York Stock Exchange
(the “
NYSE”) or any other marketplace on which the
Common Shares are listed, quoted or otherwise traded, at the
prevailing market price at the time of sale.
Distributions of the Common Shares through the
ATM Program will be made pursuant to the terms of an equity
distribution agreement dated June 16, 2020 among the Company,
AltaCorp Capital Inc., as Canadian agent, and Oppenheimer & Co.
Inc., as U.S. agent (collectively, the
"Agents").
The volume and timing of distributions under the
ATM Program, if any, will be determined in the Company's sole
discretion. The ATM Program will be effective until the earlier of
the issuance and sale of all of the Common Shares issuable pursuant
to the ATM Program and December 21, 2020, unless terminated prior
to such date by the Company or the Agents. As Common Shares sold in
the ATM Program will be issued and sold at the prevailing market
price at the time of the sale, prices may vary among purchasers
during the period of the distribution. The Company expects to use
the net proceeds from the ATM Program for general corporate
purposes, which may include: (i) working capital; (ii) capital
expenditures; (iii) debt repayments; and (iv) potential future
acquisitions.
The offering under the ATM Program will be made
pursuant to a prospectus supplement dated June 16, 2020 (the
"Prospectus Supplement") to the Company’s Canadian
amended and restated short form base shelf prospectus dated
December 14, 2018 (the "Base Shelf
Prospectus"), and pursuant to a prospectus supplement
dated June 16, 2020 (the "U.S. Prospectus
Supplement") to the Company’s U.S. base prospectus (the
"U.S. Base Prospectus") included in its
registration statement on Form F-10 (the "Registration
Statement") (File No. 333-228924) filed with the United
States Securities and Exchange Commission on December 20, 2018. The
Prospectus Supplement and the Base Shelf Prospectus are available
on the SEDAR website maintained by the Canadian Securities
Administrators at www.sedar.com, and the U.S. Prospectus
Supplement, the U.S. Base Prospectus and the Registration Statement
are available on EDGAR at the SEC’s website at www.sec.gov.
Alternatively, the Agents will send copies of the Prospectus
Supplement and the Base Shelf Prospectus or the U.S. Prospectus
Supplement and the U.S. Base Prospectus, as applicable, upon
request by contacting in Canada:
|
AltaCorp Capital Inc., Suite 3530, 66 Wellington Street West,
Toronto, ON M5K 1A1, or by telephone at (647) 776-8230 , or by
email at accdealflow@altacorpcapital.com.or in the U.S.:Oppenheimer
& Co. Inc.,85 Broad Street, 26th Floor, New York, NY 10004,
Attention: Equity Syndicate Prospectus Department, by e-mail at
equityprospectus@opco.com or by calling (212) 667-8055. |
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 does not
constitute an offer to sell or the solicitation of an offer to buy
the Common Shares, 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 and Up
Cannabis 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 aggregate
value of Common Shares which may be issued pursuant to the ATM
Program and the Company’s expected use of the net proceeds from the
ATM Program, if any. 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 Company’s use of proceeds of the ATM
Program may differ from those indicated. Forward-looking statements
should not be read as guarantees of future performance or
results.
For additional information with respect to
certain of these expectations, assumptions, risks, uncertainties
and other factors, and risk factors relating to the Company and the
Common Shares, reference should be made to the Prospectus
Supplement and the Base Shelf Prospectus or the U.S. Prospectus
Supplement and the U.S. Base Prospectus, as applicable, the
Company’s annual information form dated October 28, 2019 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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