HEXO Corp Announces US$20.0 Million Registered Direct Offering
18 January 2020 - 12:55AM
HEXO Corp (“HEXO” or the “Company”) (TSX: HEXO; NYSE: HEXO) today
announced it has entered into a definitive agreement with
institutional investors for the purchase and sale of 11,976,048
common shares at an offering price of US$1.67 per share for gross
proceeds of US$20.0 million before deducting fees and other
estimated offering expenses, pursuant to a registered direct
offering (the “Offering”). The Company has also agreed to issue to
the investors common share purchase warrants to purchase 5,988,024
common shares of the Company. The warrants will have a five
year-term and an exercise price of US$2.45 per share.
The Company expects to use the net proceeds from
the Offering for working capital and other general corporate
purposes, including funding the Company’s research and development
to further advance the Company’s innovation strategies. The
Offering is expected to close on or about January 22, 2020, subject
to the satisfaction of customary closing conditions, including, but
not limited to, the listing of the common shares on the Toronto
Stock Exchange and the New York Stock Exchange and any required
approvals of each exchange.
A.G.P./Alliance Global Partners is acting as
sole placement agent for the Offering.
The Offering is being made in the United States
only under the Company’s amended and restated short form base
shelf prospectus dated December 14, 2018 (the “Base Shelf
Prospectus”), filed with the securities regulatory authorities in
each of the provinces and territories of Canada, and the
corresponding registration statement on Form F-10 (the
“Registration Statement”) filed by the Company with the U.S.
Securities and Exchange Commission (“SEC”) under the U.S./Canada
Multijurisdictional Disclosure System (“MJDS”). The Company will
file a prospectus supplement (the “Supplement”) to the Base Shelf
Prospectus on a non-offering basis with applicable securities
regulatory authorities in Canada. The Supplement will also be filed
with the SEC as part of the Registration Statement under the MJDS.
Copies of the Supplement and the Base Shelf Prospectus will be
available on SEDAR at www.sedar.com and copies of the Supplement
and the Registration Statement will be available on EDGAR at
www.sec.gov.
Copies of the Supplement, the Base Shelf
Prospectus and the Registration Statement may also be obtained from
A.G.P./Alliance Global Partners, 590 Madison Avenue, 36th Floor,
New York, NY 10022 or via telephone at 212-624-2060 or email:
prospectus@allianceg.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 innovative
products to serve the global cannabis market. Through its hub and
spoke business strategy, HEXO is partnering with Fortune 500
companies, bringing its brand value, cannabinoid isolation
technology, licensed infrastructure and regulatory expertise to
established companies, leveraging their distribution networks and
capacity. As one of the largest licensed cannabis companies in
Canada, HEXO operates facilities in Ontario and Quebec. The
Company is also expanding internationally and has a foothold in
Greece to establish a Eurozone processing, production and
distribution centre. 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 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 Base Shelf
Prospectus and the Registration Statement and the Company’s most
recent Annual Information Form and other continuous disclosure
filings incorporated by reference in the Base Shelf Prospectus and
the Registration Statement, 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:Jennifer
Smith1-866-438-8429invest@hexo.com www.hexocorp.com
Media Relations:(819) 317-0526media@hexo.com
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