RE:RE:*Hexo closed its direct offer of 14,970,062 shares at $2.17*ZaidenCore wrote: Miketraderman60 wrote: So if you buy below $ 2.17 you are winning and will be very easy to sell above $ 2.17 up to $ 3.19 which is the exercisable offer. These a matter of time and HEXO will go back very easily towards $ 3.19...
Hexo closes $25-million (U.S.) direct offering
2020-01-02 07:13 ET - News Release
Ms. Jennifer Smith reports
HEXO CORP. CLOSES US$25.0 MILLION REGISTERED DIRECT OFFERING
Hexo Corp. has closed its previously announced registered direct offering with institutional investors. Under the offering, the company sold 14,970,062 common shares at an offering price of $1.67 (U.S.) per share for gross proceeds of $25-million (U.S.) before deducting fees and other estimated offering expenses. The company also issued to the investors common share purchase warrants to purchase 7,485,032 common shares of the company. The warrants will have a five year-term and an exercise price of $2.45 (U.S.) per share. A.G.P./Alliance Global Partners acted as sole placement agent for the offering.
The offering was made in the united states only under the company's amended and restated short form base shelf prospectus dated Dec. 14, 2018, filed with the securities regulatory authorities in each of the provinces and territories of Canada, and the corresponding registration statement on Form F-10 filed by the company with the U.S. Securities and Exchange Commission (SEC) under the U.S./Canada Multijurisdictional Disclosure System (MJDS). A prospectus supplement to the base shelf prospectus was filed on a non-offering basis with applicable securities regulatory authorities in Canada and with the SEC as part of the registration statement under the MJDS. Copies of the supplement and the base shelf prospectus are or will be available on SEDAR and copies of the supplement and the registration statement are or will be available on EDGAR.
About Hexo Corp.
Hexo is an award-winning consumer packaged goods cannabis company that creates and distributes innovative products to serve the global cannabis market.
Is that what your think? Do you know the actual names of the institution buyers? What if the deal was a "friendly dealing of good faith" you help me and I'll help you down the road. Maybe the buyer's are not looking for a profit? and your analysis is wrong?
I see this all the time, gather round and listen up kids.
Many big companies and hedge funds will routinely short companies like Hexo, easy targets.
They sold there shares at $10 all the way down to $5 and than waited for the price to drop so they can cover.
But wait, this is my favorite part. Instead of covering like any other shorter would, and cause a reversal and increase in SP, reducing their profits.... What they do is offer these big transactions "appearing to provide finacial aid". They can get a great discount and decrease the price. Instead of buying shares on the open market, they now cover with the shares from the "Offering"
So when people say "Millionaires invested millions at $1.67 because they know what they're doing and the price won't go lower than that because that's what they bought in and need to make a profit blah blah blah"
In realitiy, they have no position, that offering, the 25M, was used to cover their short position at an extremely cheap price without raising eyebrows.
Happens all the time, Hexo is heading towards $1 in the coming months.