HEXO seeks to raise cash through stock sale

846 0

The cannabis company is preparing to offer common shares to raise over $37 million

Cannabis consumer-packaged good company HEXO Corp. is preparing to start its stock sales. The company has announced that it is going to submit its preliminary prospectus supplement as a follow-up to its restated prospectus from last month for a proposed public offering of commons shares that will help it raise $37 million. HEXO is currently traded on the Toronto Stock Exchange (TSX) under the ticker symbol HEXO.

In its press release on the subject, HEXO states, “The Company will also grant the underwriters for the Offering an over-allotment option to purchase up to an additional 15% of the common shares to be sold pursuant to the Offering. The over-allotment option will be exercisable for a period of 30 days after closing.”

It adds that the net proceeds will be used for “general corporate purposes.” These include funding HEXO’s global growth plans, as well as research and development to “advance the company’s innovation strategies.”

The shares will be underwritten by a number of companies, including CIBC Capital Markets and BMO Capital Markets. In addition to being traded on the TSX, as of tomorrow, they will also be available on the NYSE American Exchange under the company’s same ticker.

HEXO is one of the largest licensed cannabis companies in Canada. It owns more than 1.3 million square feet of facilities in Quebec and Ontario and is establishing a third facility in Greece in order to serve the European market. The company states in the press release, “We serve the Canadian adult-use market under the HEXO brand while continuing to provide our medical cannabis clients with consistent access to Hydropothecary medical cannabis products.”