HEXO Raises US$20 Million on Same Terms as December Unit Sale

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HEXO
Corp
Announces
US$20.0
Million
Registered
Direct
Offering

OTTAWA,
Jan.
17,
2020
(GLOBE
NEWSWIRE)


HEXO
Corp

(“HEXO”
or
the
“Company”)
(TSX:
HEXO;
NYSE:
HEXO)
today
announced
it
has
entered
into
a
definitive
agreement
with
institutional
investors
for
the
purchase
and
sale
of
11,976,048
common
shares
at
an
offering
price
of
US$1.67
per
share
for
gross
proceeds
of
US$20.0
million
before
deducting
fees
and
other
estimated
offering
expenses,
pursuant
to
a
registered
direct
offering
(the
“Offering”).
The
Company
has
also
agreed
to
issue
to
the
investors
common
share
purchase
warrants
to
purchase
5,988,024
common
shares
of
the
Company.
The
warrants
will
have
a
five
year-term
and
an
exercise
price
of
US$2.45
per
share.

The
Company
expects
to
use
the
net
proceeds
from
the
Offering
for
working
capital
and
other
general
corporate
purposes,
including
funding
the
Company’s
research
and
development
to
further
advance
the
Company’s
innovation
strategies.
The
Offering
is
expected
to
close
on
or
about
January
22,
2020,
subject
to
the
satisfaction
of
customary
closing
conditions,
including,
but
not
limited
to,
the
listing
of
the
common
shares
on
the
Toronto
Stock
Exchange
and
the
New
York
Stock
Exchange
and
any
required
approvals
of
each
exchange.

A.G.P./Alliance
Global
Partners
is
acting
as
sole
placement
agent
for
the
Offering.

The
Offering
is
being
made
in
the
United
States
only
under
the
Company’s
amended
and
‎restated
short
form
base
shelf
prospectus
dated
December
14,
2018
(the
“Base
Shelf
‎Prospectus”),
filed
with
the
securities
regulatory
authorities
in
each
of
the
provinces
and
‎territories
of
Canada,
and
the
corresponding
registration
statement
on
Form
F-10
(the
‎‎“Registration
Statement”)
filed
by
the
Company
with
the
U.S.
Securities
and
Exchange
‎Commission
(“SEC”)
under
the
U.S./Canada
Multijurisdictional
Disclosure
System
(“MJDS”).
‎The
Company
will
file
a
prospectus
supplement
(the
“Supplement”)
to
the
Base
Shelf
Prospectus
on
a
non-offering
basis
with
applicable
securities
regulatory
authorities
in
Canada.
The
Supplement
will
also
be
filed
with
the
SEC
as
part
of
the
Registration
Statement
under
the
MJDS.
Copies
of
the
Supplement
and
the
Base
Shelf
Prospectus
will
be
available
on
SEDAR
at

www.sedar.com

and
copies
of
the
Supplement
and
the
Registration
Statement
will
be
available
on
EDGAR
at

www.sec.gov
.

Copies
of
the
Supplement,
the
Base
Shelf
Prospectus
and
the
Registration
Statement
may
also
be
obtained
from
A.G.P./Alliance
Global
Partners,
590
Madison
Avenue,
36th
Floor,
New
York,
NY
10022
or
via
telephone
at
212-624-2060
or
email:

prospectus@allianceg.com
.

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.
Through
its
hub
and
spoke
‎business
strategy,
HEXO
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
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
centre.
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
please
visit

hexocorp.com
.


Original
press
release

 


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