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Hexo Shares Fall On News Of $20M Registered Direct Offering

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Hexo Shares Fall On News Of $20M Registered Direct Offering

HEXO Corp (TSX: HEXO) (NYSE: HEXO) announced Friday it has signed a definitive agreement with institutional investors for the purchase and sale of 11.98 million common shares at a price of $1.67 per share for gross proceeds of $20 million before fees and other costs. 

The company will issue to the investors common share purchase warrants with a five-year term to buy 5.99 million Hexo common shares at an exercise price of $2.46 per share.

The sole placement agent for the offering is A.G.P./Alliance Global Partners.

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Hexo said it plans to use the net proceeds from the offering for general corporate purposes such as supporting the company's research and development operations.

The offering should close on or around Jan. 22 upon meeting closing conditions that include but are not limited to the listing of the common shares on the Toronto Stock Exchange and the New York Stock Exchange, according to Hexo. 

The stock was down 8.99% at $1.62 at the time of publication Friday. 

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Photo courtesy of Hexo. 

Posted-In: Cannabis News Offerings Markets Best of Benzinga

 

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