HEXO Corp. announces pricing of public offering of common shares
January 24 2019 - 9:00PM
HEXO Corp. (“HEXO” or the “Company”) (TSX:
HEXO;
NYSE-A:
HEXO) today announced the pricing of its
underwritten public offering of common shares (the "Offering") at a
price of C$6.50 per share (the “Offering
Price”). The underwriters for the Offering have agreed to
purchase 7,700,000 common shares from the Company for gross
proceeds to the Company of C$50,050,000.
The Company has granted the underwriters an
over-allotment option to purchase up to an additional 1,155,000
common shares at the offering price, exercisable for a period of 30
days following closing.
The Offering is expected to close on January 30,
2019, subject to the satisfaction of a number of customary
conditions including, but not limited to, the listing of the common
shares on the TSX and the NYSE American and any required approvals
of each exchange.
The Company will use the net proceeds from the
Offering for general corporate purposes, including funding the
Company’s global growth initiatives and research and development to
further advance the Company’s innovation strategies.
CIBC Capital Markets and BMO Capital Markets are
acting as the lead underwriters and joint book-running managers and
Oppenheimer & Co. Inc. is acting as the co-lead underwriter for
the Offering. The co-managers for the Offering are AltaCorp Capital
Inc., Beacon Securities Limited, Bryan, Garnier & Co Ltd,
Cormark Securities Inc., Eight Capital, GMP Securities L.P.,
Laurentian Bank Securities Inc., PI Financial Corp. and Roth
Capital Partners, LLC.
The Company will file a final prospectus
supplement (the "Supplement") to the Company’s amended and restated
short form base shelf prospectus dated December 14, 2018 (the
“Base Shelf Prospectus”) with the securities regulatory authorities
in each of the provinces and territories of Canada. The
Supplement will also be filed with the U.S. Securities and
Exchange Commission ("SEC") as part of the Company’s
registration statement on Form F-10 (the “Registration Statement”)
under the U.S./Canada Multijurisdictional Disclosure System. Copies
of the Supplement and the Base Shelf Prospectus will be found on
SEDAR at www.sedar.com and on EDGAR at www.sec.gov, and a copy of
the Registration Statement will be found on EDGAR at
www.sec.gov.
Copies of the Supplement, the Base Shelf
Prospectus and the Registration Statement may also be obtained in
Canada from CIBC Capital Markets, 22 Front Street West, Mailroom,
Toronto, ON, M5J 2W5, by telephone at (416) 956-3636, by email at
michelene.dougherty@cibc.ca or from BMO Capital Markets, Brampton
Distribution Centre c/o The Data Group of Companies, 9195 Torbram
Road, Brampton, Ontario, L6S 6H2, by telephone at 905-791-3151 Ext.
4312 / 4322, or by email at torbramwarehouse@datagroup.ca and in
the United States from CIBC Capital Markets, 425 Lexington Avenue,
5th floor, New York, NY, by telephone at (800) 282-0822, by email
at useprospectus@cibc.com or from BMO Capital Markets Corp., Attn:
Equity Syndicate Department, 3 Times Square, 25th Floor, New York,
NY 10036 (Attn: Equity Syndicate), or by telephone at (800)
414-3627, or by email at bmoprospectus@bmo.com.
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 award-winning
products to serve the global cannabis market. As one of the largest
licensed cannabis companies in Canada, HEXO Corp. operates with
over 1.3 million sq. ft. of facilities in Ontario and Quebec and a
foothold in Greece with plans to establish a Eurozone processing,
production and distribution centre. We serve the Canadian adult-use
market under the HEXO brand while continuing to provide our medical
cannabis clients with consistent access to Hydropothecary medical
cannabis products.
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 Prospectus
Supplement and the Base Shelf Prospectus and the Company’s Annual
Information Form and other continuous disclosure filings
incorporated by reference in the Base Shelf Prospectus, 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:
Kathy Chow1-866-438-8429invest@hexo.com Media
Relations:
Sarah Brownmedia@hexo.com
Director:Adam Miron819-639-5498
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