referenced from social media site:
"Up to $180 million Equity Backstop Financing
HEXO has entered into an agreement with an affiliate of KAOS pursuant to which HEXO, KAOS and such other parties included in the standby commitment (collectively, the ?Standby Parties?). It is expected that the Standby Agreement will permit HEXO to demand the Standby Parties to subscribe for a maximum aggregate of $5 million of Common Shares per month over a period of 36 months. However, the available funds are restricted by a rolling twelve-month, equity blocker, in which the Company may not issue common shares in excess of 19.9% of the total outstanding common share balance. Under the terms of the equity purchase agreement a minimum share price of $0.30 per common share is required in order to utilize the ELOC. The Company has filed the required articles in order to consolidate the common shares on a 14:1 basis. The common shares are expected to begin trading on a post-consolidation basis on the TSX and Nasdaq on December 19, 2022,at which point, the Company?s share price is expected to exceed the minimum share price of $0.30, which remains at the prescribed pre-consolidation amount.
3 MD&A
The Common Shares are expected to be issued at a 7% discount to the 20-day volume weighted average price of HEXO?s shares on the Toronto Stock Exchange at the time the demand is made. Although the maximum standby commitment is contracted to be $180 million over the term of the Standby Agreement (the ?Standby Commitment?) it remains subject to the equity blocker described above.
Approvals from the TSX and the Company?s shareholders and the exemptive relief order from the Autorit? des March?s Financiers and each of the securities regulatory authority in each of the other provinces and territories of Canada were received by the Company respectively on May 13, 2022, on June 14, 2022 and August 19, 2022. As at the date of this MD&A, the prospectus supplement qualifying the Stand-By Commitment Shares had not been filed and the Stand-By Commitment has therefore not been drawn upon."