HEXO Corp. announced the closing of its previously announced underwritten public offering for total gross proceeds to the company of C$57,546,000. The company sold 63,940,000 units at a price of C$0.90 per unit under the offering, including 8,340,000 units sold pursuant to the exercise in full of the underwriters’ over-allotment option.
Each unit is comprised of one common share of the company and one half of one common share purchase warrant of the company. Each full warrant is exercisable to acquire one common share of the company for a period of 5 years following the closing date of the offering at an exercise price of C$1.05 per share, subject to adjustment in certain events.
Canaccord Genuity Corp. and Canaccord Genuity LLC acted as the lead underwriters for the offering, together with a syndicate of underwriters including A.G.P. / Alliance Global Partners, AltaCorp Capital Inc. and BMO Nesbitt Burns Inc.
The company expects to use the net proceeds from the offering for working capital and other general corporate purposes.
In connection with the offering, the company filed a prospectus supplement dated May 19, 2020 to the company’s amended and restated short form base shelf prospectus dated December 14, 2018 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 as part of the company’s registration statement on Form F-10 under the U.S./Canada Multijurisdictional Disclosure System.
