An anonymous director reports
HEXO CORP. ANNOUNCES FINAL CLOSING OF EARLY CONVERSION OPTION FOR DEBENTURES
Hexo Corp. has completed the final closing of its previously announced early conversion option in respect of $29.86-million aggregate principal amount of its outstanding $70-million aggregate principal amount of 8 per cent unsecured convertible debentures maturing Dec. 5, 2022. Under the final closing, $6,265,000 aggregate principal amount of debentures was converted into 7,831,250 units of the company at a price of 80 cents per conversion unit. Together with the $23,595,000 aggregate principal amount of debentures converted into 29,493,750 conversion units in an initial closing on June 10, 2020, the company has converted a total of $29,860,000 aggregate principal amount of debentures into 37,325,000 conversion units under the early conversion option.
Each conversion unit consisted of one common share of the company and one-half of one common share purchase warrant of the company. Each conversion warrant is exercisable by the holder to purchase one common share of the company at an exercise price of $1.00 per share for a period of three years from issuance. The conversion shares are subject to restrictions against resale for 12 months from issuance as part of the terms of the early conversion option. In addition, the conversion warrants and the common shares of the company issuable upon exercise of the conversion warrants are subject to resale restrictions for four months and one day following issuance under applicable securities laws.
The early conversion option does not affect the rights of those debentureholders who have not accepted it. Debentureholders who did not accept the early conversion option are not entitled to the benefit of the early conversion option and will not receive the conversion units issuable upon conversion of the debentures subject to the early conversion option, and retain their full rights under the debentures including their existing conversion rights.
About Hexo Corp.
Hexo is an award-winning consumer packaged goods cannabis company that creates and distributes innovative products to serve the global cannabis market.
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