OTTAWA, April 8, 2020 /CNW/ - HEXO Corp.
("HEXO", or the "Company") (TSX: HEXO; NYSE: HEXO)
today announced the pricing of its previously announced
underwritten public offering (the "Offering") of units of
the Company (the "Units") at a price of C$0.77 per Unit. The underwriters for the
Offering have agreed to purchase 52,000,000 Units from the Company
for total gross proceeds to the Company of approximately
Each Unit will be comprised of one common share of the Company
(a "Common Share") and one common share purchase warrant of
the Company (each a "Warrant"). Each Warrant will be
exercisable to acquire one common share of the Company (a
"Warrant Share") for a period of 5 years following the
closing date of the Offering at an exercise price of C$0.96 per Warrant Share, subject to adjustment
in certain events.
Canaccord Genuity Corp. and Canaccord Genuity LLC are acting as
the lead underwriters for the Offering, together with a syndicate
In addition, the Company has granted to the underwriters a
30-day option to purchase up to an additional 7,800,000 Units
offered in the Offering on the same terms and conditions.
The Company expects to use the net proceeds from the Offering
for working capital and other general corporate purposes.
The Offering is expected to close on or about April 13, 2020 and will be subject to market and
other customary conditions, including approvals of the Toronto
Stock Exchange and the New York Stock Exchange.
The Units will be offered pursuant to a prospectus supplement
(the "Prospectus Supplement") to the Company's amended
and restated short form base shelf prospectus dated December 14, 2018 (the "Base Shelf
Prospectus") to be filed with the securities commissions
or similar securities regulatory authorities in each of the
provinces and territories of Canada, and 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 ("MJDS").
Copies of the Prospectus Supplement, following filing
thereof, and the Base Shelf Prospectus will be available on SEDAR
at www.sedar.com and on EDGAR at www.sec.gov and a copy of the
Registration Statement will be available on EDGAR at www.sec.gov.
Copies of the Prospectus Supplement, following filing thereof, the
Base Shelf Prospectus and the Registration Statement may also be
obtained in Canada from Canaccord
Genuity Corp., 161 Bay Street, Suite 3000, Toronto, ON M5J 2S1 and in the United States from Canaccord Genuity LLC,
99 High Street, Suite 1200, Boston,
Massachusetts 02110, Attn: Syndicate Department, by
telephone at (617) 371-3900, or by email at
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.
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 timing and potential completion of, and
use of proceeds from, the Offering. 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, 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.
SOURCE HEXO Corp.