Hexo Corp. Announces C$40 Million Underwritten Public Offering

OTTAWA, April 8, 2020 /CNW/ - HEXO Corp. ("HEXO", or the "Company") (TSX: HEXO; NYSE: HEXO) today announced the pricing of its previously announced underwritten public offering (the "Offering") of units of the Company (the "Units") at a price of C$0.77 per Unit. The underwriters for the Offering have agreed to purchase 52,000,000 Units from the Company for total gross proceeds to the Company of approximately C$40 million.

Each Unit will be comprised of one common share of the Company (a "Common Share") and one common share purchase warrant of the Company (each a "Warrant"). Each Warrant will be exercisable to acquire one common share of the Company (a "Warrant Share") for a period of 5 years following the closing date of the Offering at an exercise price of C$0.96 per Warrant Share, subject to adjustment in certain events.

Canaccord Genuity Corp. and Canaccord Genuity LLC are acting as the lead underwriters for the Offering, together with a syndicate of underwriters. 

In addition, the Company has granted to the underwriters a 30-day option to purchase up to an additional 7,800,000 Units offered in the Offering on the same terms and conditions.

The Company expects to use the net proceeds from the Offering for working capital and other general corporate purposes.

The Offering is expected to close on or about April 13, 2020 and will be subject to market and other customary conditions, including approvals of the Toronto Stock Exchange and the New York Stock Exchange. 

The Units will be offered pursuant to a prospectus supplement (the "Prospectus Supplement") to the Company's amended and restated short form base shelf prospectus dated December 14, 2018 (the "Base Shelf Prospectus") to be filed with the securities commissions or similar securities regulatory authorities in each of the provinces and territories of Canada, and with the U.S. Securities and Exchange Commission (the "SEC") as part of the Company's registration statement on Form F-10 (the "Registration Statement") under the U.S./Canada Multijurisdictional Disclosure System ("MJDS").

Copies of the  Prospectus Supplement, following filing thereof, and the Base Shelf Prospectus will be available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov and a copy of the Registration Statement will be available on EDGAR at www.sec.gov. Copies of the Prospectus Supplement, following filing thereof, the Base Shelf Prospectus and the Registration Statement may also be obtained in Canada from Canaccord Genuity Corp., 161 Bay Street, Suite 3000, Toronto, ON M5J 2S1 and in the United States from Canaccord Genuity LLC, 99 High Street, Suite 1200, Boston, Massachusetts 02110, Attn: Syndicate Department, by telephone at [phone], or by email at [email protected].

No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release is for information purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About HEXO

HEXO Corp is an award-winning consumer packaged goods cannabis company that creates and distributes innovative products to serve the global cannabis market. The Company serves the Canadian adult-use markets under its HEXO Cannabis and Up Cannabis brands, and the medical market under HEXO medical cannabis. For more information please visit hexocorp.com.

Forward Looking Statements

This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws ("forward-looking statements"), including statements regarding the timing and potential completion of, and use of proceeds from, the Offering. Forward-looking statements are based on certain expectations and assumptions and are subject to known and unknown risks and uncertainties and other factors that could cause actual events, results, performance and achievements to differ materially from those anticipated in these forward-looking statements, including that the Offering may not be completed on the terms indicated or at all, the Company may be unsuccessful in satisfying the conditions to closing of the Offering and the Company's use of proceeds of the Offering may differ from those indicated. Forward -looking statements should not be read as guarantees of future performance or results.

A more complete discussion of the risks and uncertainties facing the Company appears in the Prospectus Supplement, the Base Shelf Prospectus and the Registration Statement and in the Company's Annual Information Form and other continuous disclosure filings, which are available on SEDAR at www.sedar.com and EDGAR at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements as a result of new information or future events, or for any other reason.

SOURCE HEXO Corp.

Investor Relations: Jennifer Smith, 1-866-438-8429, [email protected], www.hexocorp.com; Media Relations: [phone], [email protected]