Hexo Corp. Completes C$34.5 Million At-the-Market Offering Program
August 13 2020 - 6:30AM
HEXO Corp. (“
HEXO”, or the
“
Company”) (TSX: HEXO; NYSE: HEXO) today announced
that it has completed its previously announced at-the-market equity
program (the “
ATM Program”). Under the ATM
Program, the Company sold an aggregate of 33,921,979 common shares
between June 18, 2020 and July 31, 2020 through the Toronto Stock
Exchange, the New York Stock Exchange and other marketplaces on
which the common shares are listed, quoted or otherwise
traded. The common shares were sold at prevailing market
prices for gross proceeds of C$17,248,047 and US$12,751,168, or
total gross proceeds of C$34,497,272 after applying applicable
US$-C$ exchange rates.
Distributions of the common shares through the
ATM Program were made pursuant to the terms of an equity
distribution agreement dated June 16, 2020 among the Company, ATB
Capital Markets Inc., as Canadian agent, and Oppenheimer & Co.
Inc., as U.S. agent.
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; and (iii) debt
repayments.
The offering under the ATM Program was 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.
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, 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 Company’s
expected use of the net proceeds from the ATM Program.
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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