- HEXO Corp (HEXO) announces USD $20 million registered direct offering
- The agreement is for 11,976,048 shares at a price of USD $1.67 each
- The company will also offer purchase warrants for 5,988,024 shares at USD $2.45 each, exercisable within five years
- HEXO stocks are in the red by 5.58% to $1.86, with a market cap of $528.46 million
HEXO Corp (HEXO) has entered into an agreement with institutional investors for the purchase of 11,976,048 common shares at a price of USD $1.67 per share.
Gross proceeds will total USD $20 million before the deduction of relevant fees and other offering expenses.
In addition, the award-winning consumer goods cannabis company will issue purchase warrants for 5,988,024 common shares at a price of USD $2.45 per share, with an exercise period of five years.
HEXO plans to use the proceeds for working capital and other general purposes, including the funding of research and development in order to further the company’s innovation strategies.
The offering is expected to close on approximately January 22, 2020, and is subject to relevant closing conditions, including the listing of the stocks on both the Toronto Stock Exchange and the New York Stock Exchange.
HEXO stocks are in the red by 5.58% to $1.86, with a market cap of $528.46 million.