Monday, September 15, 2025

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Hexo Conducts Early Debt Conversion, Then Announces Public Offering

After climbing 41% on the day following the announced early conversion of debentures, Hexo Corp (TSX: HEXO) (NYSE: HEXO) has announced that it will be conducting an overnight marketed public offering to get further funds in the till. The offering has not yet seen a price set for units of the company.

Hexo Corp announced earlier in the day, following a halt of its trading, that it has convinced certain holders of its unsecured convertible debentures bearing interest at 8% to convert $29.86 million in aggregate principal at a reduced rate. Originally scheduled to mature in December 2022, the debt was converted at $0.80 per unit, with each unit having one common share and one half warrant, which has an expiry of three years and a conversion price of $1.00 per share. This compares to the original conversion price of $3.16 per share under the terms of the debenture.

Shares issued under the early conversion will be subject to a one year lockup from date of issuance, while any warrants will be subject to a fourth month hold. The early conversion was limited at $30 million, however the full amount was not exercised. Of those whom elected to convert early, $7.92 million in principal was owned by members of Hexo management, which compares to $8.02 million that originally participated in the offering.

The debt offering, which was originally issued in December 2019, saw an early conversion option as a means to clean up Hexo’s balance sheet and reduce annual debt servicing costs.

The now released financing, which has yet to see a price point set, will see funds put towards working capital and general corporate purposes.

Hexo Corp last traded at $0.75 on the NYSE, up 41.08% on the day.


Information for this briefing was found via Sedar and Hexo Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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