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Bullboard - Stock Discussion Forum HEXO Equities Warrants Exp 2 Apr 2024 T.HEXO.W.A

Hexo Corp. is a Canada-based consumer packaged goods cannabis company. The Company is engaged in cultivating, processing, packaging, and distributing cannabis products to serve the cannabis market. The Company serves the Canadian recreational market with a brand portfolio, including HEXO, Redecan, UP Cannabis, Original Stash, 48North, Trail Mix, Bake Sale and Latitude brands, and the medical... see more

TSX:HEXO.W.A - Post Discussion

HEXO Equities Warrants Exp 2 Apr 2024 > Up to $180 million Equity Backstop Financing
View:
Post by TheNewOldtimer on Dec 22, 2022 6:41pm

Up to $180 million Equity Backstop Financing

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."
Comment by burnout29 on Dec 22, 2022 6:47pm
Great find OT, nice to see some positive updates instead of doom and gloom 24/7 on Hexo
Comment by Keeler on Dec 22, 2022 7:07pm
Great find? Do you guys not follow Hexo at all? This was announced in June, 6 months ago. It's not free cash - Hexo can access a max of $5 million a month for 36 months which mainly goes toward paying the Tilray debt. This has been alid out in numerous Hexo information such as the year end and Q1 MD&A. Shares are issued to KAOS - more dilution, it's really just an ATM under anotehr ...more  
Comment by TheNewOldtimer on Dec 22, 2022 7:12pm
Unlike you Keeler, most people on this forum don't take pleasure in seeing the company and it's shareholders fail. This is to provide re assurance that they have avaikable funds when needed.
Comment by Keeler on Dec 22, 2022 7:38pm
It was announced last June - the re-assurance is that Hexo will be able to make it's financial obligations to the Tilray debt. Without it - Hexo would default on it's payments - and declare bankruptcy, just like they defaulted on the HT debt payment. Debt is debt - whether it's Tilray or HT, some of you guys think Tilray/Hexo is some kind of cozy partnership - it's not, unless you ...more  
Comment by Touran77 on Dec 22, 2022 6:52pm
This post has been removed in accordance with Community Policy
Comment by TheNewOldtimer on Dec 22, 2022 6:58pm
Reinforce that Hexo will have access to necessary funds.
Comment by Keeler on Dec 22, 2022 7:02pm
This is old news, not sure why you post it now. The $180 million isn't 'free cash' - the bulk of it goes to paying the finance charges on the Tilray debt. Hexo can draw a MAXIMUM of $5 million per month for 36 months. TheNewOldtimer - (12/22/2022 6:58:48 PM) RE:RE:Up to $180 million Equity Backstop Financing Reinforce that Hexo will have access to necessary funds.  ...more  
Comment by Touran77 on Dec 22, 2022 7:15pm
This post has been removed in accordance with Community Policy
Comment by TheNewOldtimer on Dec 22, 2022 7:20pm
Cashflow positive should be evident in the next earnings report with all of the positive changes being implemented IMO
Comment by Mukulu20 on Dec 22, 2022 7:25pm
Would be nice if management makes such reassuring statements. We need it badly. Market will appreciate. It's all doom and gloom here. We need to stop the bleeding. 
Comment by Spectra7 on Dec 22, 2022 7:27pm
Touran77,  thank you for the clarity and balance.  Hopefully the pumps ( printing press) does NOT break down as this ship continues to take on water  S7
Comment by TheNewOldtimer on Dec 22, 2022 7:34pm
S7 another poster that provides nothing to the forum but negativity, if you are not invested why to you visit this forum, anything constructive would be appreciated but I doubt that will happen lol
Comment by Spectra7 on Dec 22, 2022 7:44pm
TNO, to the contrary.  I suspect that I have and continue to be invested well before you even heard of Hydropothecary/Hexo...or maybe we met in Toronto with SSL & his sidekick brother in law begging for seed $$$    He was wise to abandon the team. Although my position has been greatly reduced, I do hold  ...just as a reminder of what could have been. You say negative,  ...more  
Comment by Spectra7 on Dec 22, 2022 8:02pm
Imho, informing potential investors to the snake oil sales-people and misinformation provides some level of balance, I would suggest that is constructive.  I tried to help you. S7
Comment by momocau on Dec 22, 2022 8:35pm
S7, YOU SAY YOU WANT TO HELP THENEW OLDTIMER AND WELL IF YOU REALLY WANT TO HELP HIM, IT'S SIMPLE QUIT THIS POST, HE WILL BE HAPPY. BY BY
Comment by Spectra7 on Dec 22, 2022 8:58pm
momocau, i want to help you to, but I'm afraid you are in way to deep. All the best. Cheers   S7
Comment by TheNewOldtimer on Dec 22, 2022 9:05pm
Alot of us are in deep, too deep is difficult to measure as everyone has a different situation. It is very hard to know who you can trust. To anyone honestly trying to help I say thank you! It would be nice and very much appreciated to see more positive and helpful posts, no one likes to lose money and be laughed at by "narcissists" right lol
Comment by VeritasVern on Dec 23, 2022 11:28am
It's quite clear that the buy/hold  ave down strategy is a colossal failure. For year now and more ppl like Keeler and I have been warning of the risk but you and others were too stubborn, and dismissed our take as bashers. Most recently we were right about the reverse split and how it would just allow more room for further declines on continuing dismal financials and again dismiss and ...more  
Comment by Rotaluceps on Dec 23, 2022 5:15pm
there is a difference between negativity and reality. The reality is that Hexo is on life support as long as they can get financing. 
Comment by Rotaluceps on Dec 23, 2022 5:10pm
You have to be kidding. To be cash flow positive a company need profit. You lack some understanding to post this. 
Comment by Rotaluceps on Dec 23, 2022 2:57pm
What use for the funds if they can't generate positive but instead declining revenue. I am not talking about profit here but revenue.
Comment by Keeler on Dec 23, 2022 3:03pm
The funds - $5 million a month max - go into Tilray's bank account as they repay the debt Hexo owes. There isnt left for revenue generation - which is one reason why Truss USA shut down, Hexo had no money and Molson didntw ant to invest anymore into a dead JV Rotaluceps - (12/23/2022 2:57:25 PM) RE:RE:RE:Up to $180 million Equity Backstop Financing TheNewOldtimer wrote ...more  
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