HEXO Corp (NYSE:HEXO) shares took the aerial routein the pre-market today after the Company reported that it has updated and revised the short form base shelf prospectus dated December 14, 2018, amending and revising its November 19, 2018, short form base shelf prospectus has expired.
From time to time, during the 25 months starting November 19, 2018, the shelf prospectus referred to the offering for sale by the Company of up to $800,000,000 in the amount of the Company’s common stock, options, subscription receipts, and units. The Corporation issued shares for net gross proceeds of $254.3 million between January 2019 and August 2020 under the Shelf Prospectus. The Organization has agreed at this time not to file another short form base shelf prospectus.
”HEXO has made significant changes to its processes, product portfolio, and overall enterprise on the road to sustainability since the prospectus was first filed. This fiscal year’s first quarter was our sixth consecutive quarter of growth in Adjusted EBITDA as we are heading towards positive Adjusted EBITDA. “We are also progressing on the path to positive cash flow from our operations,” said Trent MacDonald, HEXO CFO. We continue to hold the number one market share spot in Quebec while increasing into other countries and are currently the top four net revenue dollars in Canada’s adult market share. Via Truss, our joint venture with Molson Coors, climbed into the top beer spot and earned the number one market share ranking for the hash, which we expect will continue to be a significant segment for the industry. In light of our strong financial standing, and most importantly, our excellent liquidity and cash flow position, we do not see the need to perform more rounds of borrowing shortly.”