OTTAWA, August 24, 2021 (GLOBE NEWSWIRE) – HEXO Corp. (“HEXO”, or the “Company”) (TSX: HEXO; NASDAQ: HEXO) today announced the closing of its previously published bought deal public offering (the “Offering”), for aggregate gross proceeds for the Company of 144,786,070.80 US dollars. The Company sold 49,080,024 units of the Company (the “Units”) at a price of US $ 2.95 per unit as part of the Offering, including 1,622,396 units sold under the partial exercise by the lessees. firm from their over-allotment option at closing.
Each unit is composed of one common share of the Company and one half of a subscription warrant for the common share of the Company. Each entire warrant may be exercised 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 US $ 3.45 per share, subject to adjustment in certain cases.
AGP / Alliance Global Partners and Cantor Fitzgerald Canada Corporation act jointly as bookkeepers for the Offering, with ATB Capital Markets Inc. acting as co-manager for the Offering.
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 upon the closing of the Redecan Acquisition and expenses related to its plans to. expansion in the United States.
In connection with the offering, the Company has filed a prospectus supplement dated August 20, 2021 (the “Prospectus Supplement”) to the Company’s simplified, amended and restated base shelf prospectus dated May 25, 2021 (the “Prospectus Supplement”). “Simplified base prospectus”) 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 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 and the Simplified Base Prospectus are available on SEDAR at www.sedar.com and a copy of the Registration Statement is available on EDGAR at www.sec.gov. Copies of the Prospectus Supplement, Simplified Base Prospectus and Registration Statement may also be obtained from AGP / Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at ( 212) 624-2060, or by email at email@example.com. Copies may also be obtained in Canada from Cantor Fitzgerald Canada Corporation by email at firstname.lastname@example.org or in the United States from Cantor Fitzgerald & Co. or by email at email@example.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; NASDAQ: 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 be the number one cannabis product industry in Canada in terms of recreational cannabis market share..
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 placement and use of its product and the Company’s expectations. regarding its market share. Forward-looking statements are based on certain expectations and assumptions and are subject to known and unknown risks and uncertainties and to 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 the manner 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.