Hexo Corp (TSX: HEXO) (NASDAQ: HEXO) last night announced that it has closed its previously announced public offering. The financing saw a total of US$144.8 million in gross proceeds raised, which includes the partial exercise of the over-allotment option.
In total, the company managed to sell 49.1 million units of the company under the offering at US$2.95 per unit, with each unit containing one common share and one half of a common share purchase warrants. Each full warrant is valid for a five year period, and contains an exercise price of US$3.45 per share.
Proceeds from the offering are predominantly to be used for the closing of the previously announced acquisition of Redecan, a private cannabis operator in Canada. A total of US$100 million from the financing will go towards this purpose, along with the US$229.32 million in currently escrowed funds for this purpose from the firms secured note financing conducted earlier this year. Closing of the transaction is subject to shareholder approval, which it is expected to receive later today at its scheduled shareholder meeting.
A further $20.0 million from the financing is slated for the firms planned US expansion plans, with the remainder earmarked for working capital and general corporate purposes as per the prospectus.
Hexo Corp last traded at $3.25 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.
