OTTAWA, Aug. 20, 2021 (GLOBE NEWSWIRE) – HEXO Corp (“HEXO” or the “Company”) (TSX: HEXO; NYSE: HEXO) today announced the price of its public placement between two trading sessions according to an agreement previously published underwriting (the “Offering”) of units of the Company (the “Units”). The underwriters in connection with the offering have agreed to purchase 47,457,628 units at a price of US $ 2.95 per unit for aggregate gross proceeds of approximately US $ 140 million to the Company, before deduction of commissions. underwriting and costs associated with the offering.
Each Unit will consist of one common share of the Company (one “Common Share”) and one-half of the common share purchase warrant of the Company (each whole warrant constituting a “warrant”). Each warrant may be exercised to acquire one common share of the Company (a “warrant share”) for a period of five years following the closing date of the offering at an exercise price of US $ 3.45. per warrant share, subject to adjustment in certain cases.
AGP / Alliance Global Partners and Cantor Fitzgerald Canada Corporation are acting jointly as lead underwriters and bookkeepers for the offering, with ATB Capital Markets Inc. acting as co-manager for the offering.
The Company has also granted the underwriters a 30-day option allowing them to acquire up to 7,118,644 additional units sold under the offering, under the same terms and conditions.
The Company expects to use the net proceeds of the Offering to satisfy a portion of the cash component of the purchase price payable to Redecan shareholders on the closing of the Redecan Acquisition and expenses related to its plans. expansion in the United States. The offering is scheduled to close on or about August 24, 2021 and will be subject to market and other customary conditions, including Toronto Stock Exchange approvals.
The offering is being made in accordance with a prospectus supplement (the “prospectus supplement”) to the simplified, amended and updated base shelf prospectus of the Company dated May 25, 2021 (the “simplified base prospectus”) which will be filed with securities commissions or similar securities regulatory authorities in each of the provinces and territories of Canada, as well as with the United States Securities and Exchange Commission (the “SEC”) in the as part of the Company’s registration statement on Form F-10 (the “Registration Statement”) under the Canada-United States Multinational Information Regime.
Copies of the Prospectus Supplement, after filing, and the Short Form Base Prospectus will be available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. Copies of the Prospectus Supplement, after filing and the Simplified Base Prospectus may also be obtained, when available, from AGP / Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by phone at (212) 624-2060, or by email at prospectus@allianceg.com. Copies, when available, may also be obtained in Canada from Cantor Fitzgerald Canada Corporation by email at ecmcanada@cantor.com or, in the United States, from Cantor Fitzgerald & Co. or e-mail at prospectus@cantor.com.
No securities regulatory authority has approved or disapproved of the contents of this press release. This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy. There will be no sale of such securities in any state or jurisdiction where such an offer, solicitation or sale would be illegal prior to registration or qualification under the securities laws of that state or territory. of competence.
About HEXO Corp (TSX: HEXO; NYSE: HEXO)
HEXO is an award-winning licensed producer of innovative products for the global cannabis market. HEXO serves the Canadian recreational cannabis market with its portfolio of HEXO, UP Cannabis, Original Stash, Bake Sale, Namaste and REUP brands, as well as the medical market in Canada, Israel and Malta. The Company also serves the Colorado market through its Powered by HEXO® strategy and Truss CBD USA, a joint venture with Molson Coors. In the event that the previously announced acquisitions of 48North and Redecan are completed, HEXO expects to lead the cannabis products industry in Canada in terms of recreational cannabis market share.
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, possible completion and use. of his product. 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 events, results, performance and achievements to differ materially from those stated therein. are anticipated, including the possibility that the placement will not be completed in accordance with the terms indicated or that it will not be completed at all, that the Company does not meet the conditions for closing the placement and that the use by the Company of the investment income differs from that shown. These forward-looking statements should not be interpreted as guarantees of future performance or results.
A more complete analysis of the risks and uncertainties facing the Company is presented in the prospectus supplement and the simplified base prospectus, in the registration statement and in the other continuous disclosure documents of the Company which are available at SEDAR at www.sedar.com and on 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.
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