HEXO to Raise Up to 1.2 Billion Canadian Dollars in Fresh Capital
Hardly for the first time in its corporate life, HEXO (NYSE: HEXO) is gearing up to raise some funds. The company announced on Thursday that it has filed regulatory paperwork stating that it aims to amass up to 1.2 billion Canadian dollars ($958 million) over the next 25 months. This can, and likely will, take different forms, including the issuance of stock, warrants, or the combination of the two known as "units" -- an increasingly common instrument of fund-raising issued by marijuana companies of late.
In its press release trumpeting the declaration, HEXO quoted its CEO Sebastien St-Louis as saying that the monies raised will "provide maximum flexibility as we continue to pursue strategic initiatives in both the United States and Canada."
"We have now started to deploy capital in the United States, are remaining active in [mergers and acquisitions] and are in ongoing discussions with potential non-beverage [consumer packaged goods] partners which we expect will require additional capital as we continue to execute on our growth and expansion strategy," he added without providing further detail.
Source Fool.com
