Hexo Corp (TSX: HEXO) (NYSE: HEXO) this morning released the terms of its previously announced overnight marketed public offering. The company will see a total of US$140 million raised via the sale of units of the company.
Under the terms of the financing, a total of 47.5 million units of the company are to be sold at US$2.95 per unit. Each unit contains one common share and one half of a common share purchase warrant, which is valid for a period of five years and contains an exercise price of US$3.45 per warrant share.
A 15% over-allotment option has also been granted in connection with the financing.
Funds from the offering are to be used for the cash component of the firms acquisition of Redecan, as well as for its US expansion plan.
The offering is expected to close August 24.
Hexo Corp last traded at US$2.48 on the NYSE, down 22.50% 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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.