Hexo Corp (TSX: HEXO) (NYSE: HEXO) this morning announced its second financing of the month, this time for US$20.0 million. The terms appear to be substantially the same as the registered direct offering announced in late December and closed at the start of January.
Under the terms of the registered direct offering announced this morning, the company will be issuing 11,976,048 common shares at a price of US$1.67 per common share. Each common share effectively comes with a half warrant, with 5,988,024 common share purchase warrants being issued as part of the financing. Each warrant entitles the holder to purchase a common share of the company at a price of US$2.45 for a period of five years.
Funds from the offering will be put towards research and development purposes, as well as general working capital.
The company expects the financing to close on or around January 22, 2020.
Hexo Corp last traded at $1.78 on the NYSE.
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.
