Hexo IR Part 2be issued and a fractional HEXO share would result, then the number of HEXO shares to be issued will be rounded down to the closest whole number of HEXO shares without any additional compensation or cost.
As a result of such adjustment, 63.17 HIP warrants would have to be exercised to acquire one HEXO share, at an exercise price of $1.00 each and an aggregate exercise price of $63.17 (as opposed to 15.79 HIP warrants having to be exercised to acquire one HEXO share, at an exercise price of $1.00 each and an aggregate exercise price of $15.79 before the consolidation). For example, if you hold 1,000 HIP warrants with the $1.00 exercise price and expiring June 19, 2023 and decided to exercise them, you would pay $1,000 and receive 15 common shares of HEXO (1,000*0.01583). This would mean you paid approximately $63.17 per share ($1/0.01583), without receiving the fractional HEXO share.
You have two options, you can choose to exercise your HIP warrants to acquire HEXO shares before their expiry date, or you can let your warrants expire.
There is no plan to extend the expiry date of the HIP warrants.
To exercise your HIP warrants, please contact your investment broker or brokerage to execute the transaction.
CanadianWarrants.com have the hip warrants at 15 hip warrants to 1 Hexo share. I’m thinking Canadian Business Law protects those warrants from a double reverse split. In the U.S. the rules may allow for this, Hexo listed in Canada and U.S. Anyone credible on here please check with broker. Thanks everyone.