Hexo converts C$29.86 million 8% convertibles under option

By Wendy Van Sickle

Columbus, Ohio, June 30 – Hexo Corp. concluded the final closing of its early conversion option of its C$70 million 8% unsecured convertible debentures due Dec. 5, 2022. A total of C$29.86 million of the debentures were converted under the option.

Under the final closing, C$6,265,000 principal amount of debentures was converted into 7,831,250 units of the company at C$0.80 per conversion unit, according to a company news release.

Under the previous initial closing, C$23.595 million principal amount of debentures was converted into 29,493,750 units of the company at C$0.80 per conversion unit.

The company converted a total of $29.86 million of debentures into 37,325,000 conversion units under the conversion option.

The conversion unit consisted of one company common share 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 C$1.00 per share for a period of three years from issuance. The conversion shares are subject to restrictions against resale for 12 months ending June 10, 2021 as part of the terms of the early conversion option.

The conversion warrants and common shares of the company issuable upon exercise of the conversion warrants are subject to resale restrictions until Oct. 11, 2020.

Hexo is a cannabis packaged goods company based near Ottawa.

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