Nothing has changed since April 8/20 Public OfferingSo as instructed by BMO - Hexo paid off 429 million debt a few weeks ago - and as instructed by BMO last year - Hexo announces a ATM on April 8/20. Also of interest for current shareholders, is that covenants related to current outstanding debt of $35.0 million with CIBC and BMO requires that the company close on at minimum $40 million in net cash proceeds from the issuance of equities by April 30, 2020. The funding can occur via an at-the-market offering, or via the sale of equity in a funding of at least $15.0 million, either of which must be announced on or before April 10, 2020. Interesting to note that on April 8, 2020 - SSL states below "
Sebastien St-Louis said the company needs about $150 million for its future capital needs and expects to raise that financing through an "at-the-market" equity program. In other words - Hexo is at exactly the same point to day as it was one year ago - need more money, nothing has changed and it seemingly won't with current management - CEO and CFO. Apr 8, 2020
Hexo shares plunge after pot firm raises $40M in public offering David George-Cosh, BNN Bloomberg
Shares of Hexo Corp. plunged in early Wednesday trading after the cannabis producer said it raised $40 million in a financing
that includes shares priced below the previous day's closing price. Hexo said an underwriting syndicate led by Canaccord Genuity agreed to purchase 52 million units from the pot producer at $0.77 apiece. Each unit includes one common share and a warrant that can be exercised over the next five years to purchase an additional share at $0.96 – matching the company’s closing price on the TSX Monday.
Hexo said in a release it expects to use the proceeds from its financing for "working capital and other general corporate purposes."
During Hexo's conference call with analysts following its second-quarter results last month, Chief Executive Officer
Sebastien St-Louis said the company needs about $150 million for its future capital needs and expects to raise that financing through an "at-the-market" equity program. Hexo raised about $130 million over the past several months, according to company releases. Jefferies analyst Owen Bennett said in a report released Wednesday that any material capital raised will likely result in significant dilution of Hexo's stock, and questioned whether any investors would have appetite to further finance the company.