OTTAWA, May 18, 2020 /CNW/ - HEXO Corp. ("HEXO",
or the "Company") (TSX: HEXO; NYSE: HEXO) today announced
that it will be filing a preliminary prospectus supplement (the
"Preliminary Supplement") to its amended and restated short
form base shelf prospectus dated December
14, 2018 (the "Base Shelf Prospectus") relating to a
proposed overnight marketed public offering (the "Offering")
of units of the Company (the "Units").
The Offering is expected to be priced in the context of the
market, with the final terms of the Offering to be determined at
the time of pricing. There can be no assurance as to whether or
when the Offering may be completed, or as to the actual size or
terms of the Offering. The closing of the Offering will be subject
to market and other customary conditions, including approvals of
the Toronto Stock Exchange and the New York Stock Exchange.
In addition, the Company intends to grant the underwriters a
30-day option to purchase up to an additional 15% of the Units
offered in the proposed Offering on the same terms and
The Company expects to use the net proceeds from the Offering
for working capital and other general corporate purposes.
Canaccord Genuity Corp. and Canaccord Genuity LLC are acting as
the lead underwriters for the Offering.
The Preliminary Supplement will 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"). The Preliminary Supplement, the
Base Shelf Prospectus and the Registration Statement contain
important detailed information about the Company and the proposed
Offering. Prospective investors should read the Preliminary
Supplement, the Base Shelf Prospectus and the Registration
Statement and the other documents the Company has filed before
making an investment decision.
Copies of the Preliminary Supplement, following filing thereof,
and the Base Shelf Prospectus will be available on SEDAR at
www.sedar.com and copies of the Preliminary Supplement and the
Registration Statement will be available on EDGAR at www.sec.gov.
Copies of the Preliminary 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 terms, 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 Preliminary 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.