In October 2019, Hexo Corp announced that the company would be gaining $70 million private placement from a group of investors. While the company has yet to release their quarterly earnings, the announcement still sent the company’s stocks through the roof.
Hexo is a consumer packaged goods cannabis company. It operates to make and distribute cannabis products.
The investors in the $70 million private placement include the CEO and co-founder of the company, Sebastien St-Louis. There are also board members contributing, including Dr. Michael Munzar, Adam Miron, Nathalie Bourque, and Vincent Chiara.
Really, the private placement is a group of debentures that will have an 8.0% per annum payable quarterly from the date of closing. The debentures are set to mature three years from their initial issuance.
The company is required to repurchase the debenture if there is any change in control of the company. For the investors in this sense, the investors themselves would need to step down or lose their jobs before that is at any risk from happening.
With that much investment, the CEO and other investors are showing how confident they are and how much they believe in the future success of Hexo.a month ago