Québec-based Hexo, a licensed producer of marijuana products in Canada, has filed a Form F-10 with the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO). The company registered total securities valued at $599 million but did not specify how many common shares would be sold in the IPO. Shares currently trade on the Toronto Stock Exchange under the ticker symbol HEXO and closed Thursday at C$4.55 (about US$3.35).
Hexo, once known as Hydropothecary, has finalized a joint venture deal with brewer Molson Coors Canada, a subsidiary of Molson Coors Inc. (NYSE: TAP). Under the terms of the deal, Molson Coors owns 57.5% of the venture, which has been named Truss, with a wholly owned subsidiary of Hexo owning the remaining 42.5%.
The joint venture was formed to develop non-alcoholic, cannabis-infused beverages for the Canadian market. Hexo issued 11.5 million warrants to Molson Coors Canada to purchase shares of Hexo for a period of three years at $6.00 per share.
Hexo sells its recreational cannabis products under its namesake brand and markets medical marijuana products under the Hydropothecary brand.
The company’s current licensed facilities total approximately 310,000 sq. ft., including 292,000 sq. ft. of greenhouse space, and Hexo is in the process of expanding to add an additional 1,000,000 sq. ft. of greenhouse space, which is on track to be completed in this month. The current production capacity is capable of yielding 25,000 kg of quality dried cannabis and dried cannabis equivalent products and is expected to rise to 108,000 kg annually following the expansion.
For its fiscal year that ended July 31, Hexo reported revenue of C$4.93 million and a net loss of C$23.35 million (C$0.17 per share).
The company did not say precisely how it planned to use the proceeds from its U.S. IPO but did note that it may use them for general corporate purposes, including funding ongoing operations or working capital, to repay debt and for capital projects and potential future acquisitions.
Hexo has applied to trade on the NYSE American exchange under the ticker symbol HEXO.
Cash Back Credit Cards Have Never Been This Good
Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.