Hexo Corp to Delay Q4 Results, Conduct $70 Million Financing Pennies Above 52 Week Low

Hexo Corp (TSX: HEXO) (NYSE: HEXO) announced this afternoon that it will be delaying its fourth quarter financials, which were originally expected to drop tomorrow during premarket hours. The delay is a result of the firm announcing a $70 million debenture financing, in which insiders are expected to take slightly over 10% of the total financing.

The financing is to take the form of unsecured convertible debentures, which will bare interest at a rate of 8.0% per annum. The debentures are for a period of three years, and will have a conversion price of $3.16 per share. A forced conversion clause is in effect as well, with the company having the right to force the conversion of the debentures if the volume weighted average price of the equity exceeds $7.50 for a period of fifteen trading days. No warrants will be attached to the debentures.

Insiders of the company, including CEO Sebastien St-Louis, are expected to subscribe for up to $8.676 million.

The financing, which is expected to close on November 15, comes at a pecular time for the firm. As of the last reporting period, Hexo Corp had $173.09 in cash, plus additional funds marked as being restricted. Yet, the firm is electing to conduct a financing of debt at effectively $3.16 per share, which is only pennies off of the 52 week low for the firm at $3.07.

Financial results for the fourth quarter are now expected to be released on October 28, 2019. Hexo had previously announced preliminary figures that indicate a miss on guidance.

Hexo Corp last traded at $3.31 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.

Video Articles

The Goal is Gold Production as Soon as Possible! | Gordon Robb – ESGOLD Corp.

Snowline Gold: The Multi Billion Dollar Valley PEA

Euro Sun: Rovina Copper-Gold Project Secures Some Major Funding

Recommended

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Related News

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

Hexo: Analysts Anticipate $34.4 Million In Q3 Revenues

Hexo Corp (TSX: HEXO) (NYSE: HEXO) announced that they will be reporting their fiscal third quarter...

Saturday, June 12, 2021, 01:11:00 PM

Hexo’s Truss Joint Venture Announces Five New Brands, Rollout Of Beverages

Hexo Corp (TSX: HEXO) (NYSE: HEXO) has seen its joint venture with Molson Coors Canada,...

Tuesday, August 25, 2020, 11:16:03 AM

Tilray Brands Attempted To Buy Hexo For Up To $3 Per Share In November – But Was Rejected

Yesterday, Hexo Corp (TSX: HEXO) filed a management information circular related to the arrangement entered...

Tuesday, May 17, 2022, 07:38:05 AM

Hexo Corp Share Consolidation To Go Into Effect December 23

Hexo Corp (TSX: HEXO) (NYSE: HEXO) announced this evening after the close of markets that...

Friday, December 18, 2020, 06:25:35 PM