$6 million goes directly to Tilrayas payment for waiving the breach of the orignal agreement. If Tilray had not agreed to this - Hexo would have had no choice but to decalre bankruptcy, but I would think it would 'irk' a long investor who watch virtually his entrie investment - and hours of endless pumping - go completely down the drain.
Oh - and the $6 million is just the first payment that Tilray will receive from this financing.
5:39AM ET on Friday Jun 02, 2023 by MT Newswires
05:39 AM EDT, 06/02/2023 (MT Newswires) -- HEXO (HEXO) said late Thursday it closed the first of two tranches of a non-brokered private placement, consisting of the issuance of 11.5 million preferred shares at $1 each for gross proceeds of $11.5 million.
The single institutional investor participating in the placement also deposited into escrow $13.5 million, representing the second tranche, the company said.
After the payment of certain amounts, the company plans to use the remaining net proceeds from the private placement to fund ongoing expenses, liabilities, contractual commitments, and to provide additional liquidity for operations, it said.