Update Feb 11, 2019 on Hexo (former name Hydropothecary)
Jan. 30, 2019 HEXO announced the closing of its marketed offering of 8,855,000 common shares at a price of C$6.50 per share for aggregate gross proceeds of C$57,557,500, which includes the exercise of the full over-allotment option of 1,155,000 common shares.
The Company will use the net proceeds from the Offering for general corporate purposes, including funding the Company’s global growth initiatives and research and development to further advance the Company’s innovation strategies.
CIBC Capital Markets and BMO Capital Markets are the lead underwriters and joint book-running managers and Oppenheimer & Co. Inc. is the co-lead underwriter for the Offering. The co-managers for the Offering are AltaCorp Capital Inc., Beacon Securities Limited, Bryan, Garnier & Co Ltd, Cormark Securities Inc., Eight Capital, GMP Securities L.P., Laurentian Bank Securities Inc., PI Financial Corp. and Roth Capital Partners, LLC.
This financing vaults the company into a much higher valuation and puts it into the big leagues as it now has money to develop new products, expand production, and to grow international.
The stock is still hovering around $7.00 and could push easily into the $10.00 level. Maintain all positions and add on weakness.