Hexo Corp (TSX: HEXO) (NYSE: HEXO) this morning announced that it will be conducting an at the market financing, also known as an ATM financing, of up to $150.0 million. The financing is to be facilitated by BMO Capital Markets and Alliance Global Partners on the NYSE, and by BMO Nesbitt Burns on the TSX.
The financing is valid as of an agreement dated today, with the financing to be effective until the earlier of June 7, 2023 and the day on which $150.0 million worth of the firms equity is sold via the facility.
The company outlined a number of potential uses for the proceeds from the financing including costs associated with Hexo’s US expansion plans, which includes, “the contemplated acquisition of a facility in the State of Colorado and its subsequent retrofitting and improvement,” as well as capital expenditures such as the expansion of its Belleville, Ontario facility, potential future acquisitions, working capital and debt repayments related to the acquisition of Zenabis Global, and the repayment of additional debt owed by Zenabis. Funds are also to be used for general corporate purposes.
Hexo Corp last traded at $8.71 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.
