HEXO Corp (HEXO) has announced the pricing of its overnight marketed public offering.
The underwriters have agreed to purchase 47,457,628 units at a price of US$2.95 per unit for total gross proceeds of approximately US$140 million.
Each unit will include one common share and one half of one common share purchase warrant. Each warrant will be exercisable for one common share at an exercise price of $3.45 for a period of five years following the closing date of the offering.
A.G.P./Alliance Global Partners and Cantor Fitzgerald Canada Corporation are acting as lead underwriters and joint bookrunners, together with ATB Capital Markets Inc. which is acting as co-manager for the offering.
Hexo has granted to the underwriters a 30-day option to purchase up to an additional 7,118,644 units on the same terms and conditions.
Net proceeds will be used to satisfy a portion of the purchase price payable to the Redecan shareholders on the closing of the Redecan acquisition and for expenditures in relation to Hexo's U.S. expansion plans.
The offering is expected to close on or about August 24, 2021.
HEXO is a licensed producer of innovative products for the global cannabis market. HEXO serves the Canadian recreational market with a brand portfolio including HEXO, UP Cannabis, Original Stash, Bake Sale, Namaste, and REUP brands, and the medical market in Canada, Israel and Malta.
HEXO Corp. (HEXO) is down 27.32 per cent, trading at C$2.98 per share at 12:25 pm.