HEXO Corp Announces Filing of $1.2B Preliminary Base Shelf Prospectus

Rhea-AI Summary

HEXO Corp has filed a new preliminary short form base shelf prospectus and a corresponding shelf registration statement with Canadian and U.S. securities regulators. This filing aims to provide HEXO flexibility for strategic initiatives in the U.S. and Canada, as stated by CEO Sebastien St-Louis. The prospectus allows HEXO to offer up to C$1.2 billion in securities over 25 months, which could fund expansion, acquisitions, and general corporate purposes. The filings can be accessed via SEDAR and EDGAR.

Positive

• Ability to raise up to C$1.2 billion for strategic initiatives.
• Continued focus on expansion in the U.S. and M&A activities.

Negative

• None.

OTTAWA, April 15, 2021 (GLOBE NEWSWIRE) -- HEXO Corp (“HEXO”, or the “Company”) (TSX: HEXO; NYSE: HEXO) today announced it has filed a new preliminary short form base shelf prospectus (the "Base Shelf Prospectus") with securities regulators in each of the provinces and territories of Canada and a corresponding shelf registration statement on Form F–10 (the "Registration Statement") with the United States Securities and Exchange Commission (the "SEC").

“We made the decision to file this new base shelf prospectus and registration statement to provide maximum flexibility as we continue to pursue strategic initiatives in both the United States and Canada,” said HEXO CEO and co-founder Sebastien St-Louis. “We have now started to deploy capital in the United States, are remaining active in M&A and are in ongoing discussions with potential non-beverage CPG partners which we expect will require additional capital as we continue to execute on our growth and expansion strategy.”

The Base Shelf Prospectus and Registration Statement, when made final and effective, will enable HEXO to make offerings of up to C$1.2 billion of common shares, warrants, subscription receipts and units or a combination thereof from time to time, separately or together, in amounts, at prices and on terms to be determined based on market conditions at the time of the offering and as set out in an accompanying prospectus supplement, during the 25-month period that the Base Shelf Prospectus and Registration Statement, when made final, remain valid. The specific terms of any future offering will be established in a prospectus supplement to the Base Shelf Prospectus, which supplement will be filed with the applicable Canadian and U.S. securities regulatory authorities. Unless otherwise specified in the prospectus supplement relating to a particular offering of securities, the net proceeds from any sale of any securities may be used by HEXO for general corporate purposes, including expansion plans in the United States, potential future acquisitions, potential international expansion, capital projects, repaying indebtedness outstanding from time to time and funding ongoing operations and/or working capital requirements.

Copies of the Base Shelf Prospectus and Registration Statement can be found under the Company’s profile on SEDAR at ‎www.sedar.com and EDGAR at www.sec.gov, respectively.‎

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About HEXO (TSX: HEXO; NYSE: HEXO)

HEXO Corp is an award-winning consumer packaged goods cannabis company that creates and distributes innovative products to serve the global cannabis market. The Company serves the Canadian adult-use markets under its HEXO, HEXO Plus, Up, Original Stash and Bake Sale brands and the medical market under HEXO medical cannabis. For more information, please visit hexocorp.com.

Forward Looking Statements

This press release contains forward-looking information and forward-looking statements within the meaning of applicable securities laws (“forward-looking statements”). Forward-looking statements are based on certain expectations and assumptions and are subject to known and unknown risks and uncertainties and other factors that could cause actual events, results, performance and achievements to differ materially from those anticipated in these forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements as a result of new information or future events, or for any other reason.

Investor Relations:
invest@HEXO.com
www.hexocorp.com

Media Relations:
(819) 317-0526
media@hexo.com

FAQ

What is HEXO's recent financial filing about?

HEXO announced a new base shelf prospectus allowing it to raise up to C$1.2 billion for future offerings.

How can HEXO use the proceeds from their new filings?

Proceeds may be used for expansion, acquisitions, capital projects, and general corporate purposes.

What is the duration for which HEXO can make offerings under the new prospectus?

The offerings can be made over a 25-month period once the prospectus is made final.

Who is the CEO of HEXO and what did he say about the new filing?

CEO Sebastien St-Louis mentioned the filing provides flexibility for pursuing strategic initiatives in the U.S. and Canada.

Where can I find HEXO's filed prospectus and registration statement?

They can be found on SEDAR and EDGAR under HEXO's company profile.