HEXO Secures $25M Via Private Placements, Amends Agreements With Tilray
Portfolio Pulse from Vuk Zdinjak
HEXO Corp. has closed the first tranche of a $25M non-brokered private placement, issuing 11.5 million preferred shares at $1.00 per share. A second tranche of $13.5M is in escrow, to be released upon satisfaction of conditions in the arrangement agreement with Tilray Brands, Inc.
June 02, 2023 | 1:38 pm
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POSITIVE IMPACT
HEXO Corp. has closed the first tranche of a $25M private placement, issuing 11.5 million preferred shares at $1.00 per share, with a second tranche of $13.5M in escrow.
The closing of the first tranche of the private placement provides HEXO with additional capital, which could be used for growth and expansion. This is likely to have a positive impact on the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Tilray Brands, Inc. has amended its arrangement agreement with HEXO Corp., agreeing to acquire all outstanding preferred shares based on the applicable preferred share exchange ratio.
The amendment of the arrangement agreement with HEXO Corp. shows Tilray's commitment to the partnership. However, the impact on Tilray's stock price in the short term is uncertain, as the acquisition of preferred shares is subject to the satisfaction or waiver of conditions precedent.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 80