Hexo Corp Announces Intent To Conduct Financing To Fund Redecan Acquisition

Hexo Corp (NYSE: HEXO) (TSX: HEXO) is evidently in need of funds. The company last night after the bell announced that it would be conducting a proposed public offering, the terms of which have yet to be set. The financing is to be lead by both Cantor Fitzgerald and Alliance Global Partners.

No terms have been set at all, with the financing referred to as an overnight marketed public offering – meaning the company is currently reviewing potential demand for a shotgun financing via units of the company.

Pricing will reportedly be “in the context of the market,” with the firm already intending to offer a 15% over-allotment option in conjunction with the financing.

Net proceeds from the financing are to be used for a portion of the cash required to close on its Redecan acquisition, as well as expenditures for the firms US expansion plans.

The overnight marketed offering follows the company raising US$360 million in senior secured convertible notes earlier this year, raising gross proceeds of US$327.6 million in the process. The company also has an outstanding at-the-market financing facility, which as of June 14 had raised $47.2 million in funds. The firm reported cash on hand of $194 million as of June 14 as well.

However, the company in May agreed to acquire Redecan, a private cannabis operator, for a total price tag of $925 million – of which, $400 million is to consist of cash consideration. In short, the company will need to raise significant sums of cash if it intends to maintain its third quarter closing timeline.

Hexo Corp last traded at $4.10 on the TSX.


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.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

Hexo Sees Revenue Bump To $22.1 Million In Q3, Net Loss of $19.5 Million

Hexo Corp (TSX: HEXO) (NYSE: HEXO) this morning reported its third quarter 2020 financial results,...

Thursday, June 11, 2020, 08:38:55 AM

Hexo Corp To Acquire 48North Cannabis For $0.175 A Share

Hexo Corp (TSX: HEXO) (NYSE: HEXO) is evidently focused on acquiring struggling Canadian cannabis cultivators....

Monday, May 17, 2021, 07:38:46 AM

Hexo Corp Reports Q2 2021 Revenues Of $32.8 Million, Net Loss Of $20.8 Million

Hexo Corp (TSX: HEXO) (NYSE: HEXO) reported their fiscal second quarter 2021 financial results this...

Thursday, March 18, 2021, 07:24:09 AM

Tilray Brands Enters Definitive Agreement With Hexo Corp, To Acquire Up To US$193 Million In Debt

Tilray Brands (TSX: TLRY) has finally come to a definitive agreement with that of Hexo...

Tuesday, April 12, 2022, 08:48:31 AM

Hexo Corp Reduces Workforce 19% Amid Declining Revenue Prospects

Hexo Corp (TSX: HEXO) (NYSE: HEXO) announced this afternoon that it is making a number...

Thursday, October 24, 2019, 02:18:49 PM