HEXO (TSX: HEXO) (NYSE: HEXO) recently announced the closing of its private placement of unsecured convertible debentures for total gross proceeds of $70 million. The group of investors that took part in the offering includes HEXO CEO Sebastien St-Louis, as well as HEXO directors Dr. Michael Munzar, Vincent Chiara, Nathalie Bourque and Adam Miron. Pursuant to the offering, the company issued a total of $70 million principal amount of 8% unsecured convertible debentures maturing on December 5, 2022. The debentures are convertible any time after December 7, 2020 and prior to maturity at a conversion price of $3.16 per share, subject to adjustment in certain events. If the daily volume weighted average trading price of the common shares is greater than $7.50 for 15 consecutive trading days any time after December 7, 2020 and prior to maturity, HEXO may force the conversion of all outstanding debentures at the conversion price on 30 days’ notice. The company may also repay all, but not less than all, of the principal amount of the debentures, plus accrued and unpaid interest at any time on or before December 4, 2020. Upon maturity, the debenture holders have the right to require HEXO to repay any principal amount of their debentures through the issuance of common shares at a price equal to the volume weighted average trading price of the common shares on the TSX for the 5 trading days immediately preceding the payment date. All securities issued are subject to a four month hold period expiring April 6, 2020. Certain insiders of the company purchased and were issued, directly or indirectly, $8.02 million principal amount of debentures, which constituted “related party transactions” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). This did not exceed 25% of the company’s market capitalization, and therefore is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101. The company plans to use the net proceeds from the offering for working capital and general corporate purposes. “This financing demonstrates that investors are confident in HEXO,” HEXO co-founder and CEO Sébastien St-Louis stated in the news release. “As we continue to focus on market share, growth, and becoming a leader in our industry, increasing our cash on hand to over $70 million allows us to continue working towards these goals.”
To view the full press release, visit http://nnw.fm/3atxA
About HEXO Corp.
HEXO Corp is an award-winning consumer packaged goods cannabis company that creates and distributes innovative products to serve the global cannabis market. Through its hub and spoke business strategy, HEXO Corp is partnering with Fortune 500 companies, bringing its brand value, cannabinoid isolation technology, licensed infrastructure and regulatory expertise to established companies, leveraging their distribution networks and capacity. As one of the largest licensed cannabis companies in Canada, HEXO Corp operates facilities in Ontario and Quebec. The company is also expanding internationally and has a foothold in Greece to establish a Eurozone processing, production and distribution center. The company serves the Canadian adult-use markets under its HEXO Cannabis, Up Cannabis and Original Stash brands, and the medical market under HEXO medical cannabis. For more information, visit the company’s website at www.HEXOCorp.com.
NetworkNewsWire (NNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) NetworkNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. NNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.
To receive SMS text alerts from NetworkNewsWire, text “STOCKS” to 77948 (U.S. Mobile Phones Only)
For more information please visit https://www.NetworkNewsWire.com
NetworkNewsWire is part of the InvestorBrandNetwork.