Hexo closes early conversion of C$29.86 million 8% convertibles

By Rebecca Melvin

New York, June 11 – Hexo Corp. has closed early the early conversion option of C$29.86 million of 8% unsecured convertible debentures due Dec. 5, 2022.

Currently there is C$70 million outstanding of the debentures.

Under the initial closing, C$23.595 million principal amount of debentures was converted into ý29,493,750 units of the company at C$0.80 per conversion unit, according to a company release.

The early 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.

It is expected that the balance of the early conversion option for C$6.265 million aggregate principal amount of debentures will occur in the second half of June.

Hexo is a cannabis packaged goods company based near Ottawa.

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