Hexo Corp (TSX: HEXO) (NYSE: HEXO) this evening announced the filing of a preliminary base shelf prospectus. Slated at $1.2 billion in size, the prospectus will enable the company to potential raise significant funds over the next twenty five months.
The base shelf, which was filed in both Canada and the US, was filed to reportedly “provide maximum flexibility” as the company continues to pursue strategic initiatives. The company then indicated that it intends to remain active in M&A (see Zenabis), and is currently in discussions with “potential non-beverage CPG partners,” with such arrangements expected to require additional capital.
The prospectus as currently filed will enable the company to raise funds via common shares, warrants, subscription receipts and units. Further details on potential uses of proceeds are to be included in any prospectus supplement filed under the base shelf.
Hexo Corp last traded at $7.14 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.
