Hexo Corp Stock Price, News & Analysis

HEXO Corp. (TSX: HEXO; NASDAQ: HEXO) announced it will file a management information circular on May 16, 2022, for a shareholder meeting on June 14, 2022. The meeting seeks approval for amendments to its senior secured convertible note and a standby agreement with KAOS Capital. Due to recent stock market conditions, HEXO will amend the standby agreement to issue 10,843,373 common shares as a commitment fee, up from 7,557,711 shares. The board recommends shareholders vote for the proposed transactions, which are crucial for the company's strategic plan.

HEXO Corp. has announced the establishment of an at-the-market equity program allowing the issuance and sale of up to US$40 million in common shares. This program replaces a previous ATM offering of CAD$150 million terminated on April 11, 2022. The proceeds from the new program will support working capital and operational activities, with excess funds allocated to obligations under a recent transaction agreement with Tilray Brands. The program's terms include a distribution agreement with Canaccord Genuity, effective until June 10, 2023, or until the full amount is sold.

HEXO Corp has announced a significant leadership change as Charlie Bowman steps in as acting President and CEO following Scott Cooper's departure. Bowman's focus is on ensuring cash flow positivity, expanding market share in Canada's recreational cannabis sector, and growing international operations. Additionally, Julius Ivancsits will take over as Acting CFO. Both leaders emphasize a strategic growth plan to enhance shareholder value. These transitions are pivotal as HEXO aims to maintain stability and drive profitability amidst market challenges.

HEXO Corp (TSX: HEXO; NASDAQ: HEXO) announces the closure of its Belleville facility as part of a strategic plan to enhance production efficiency and streamline operations. This decision aims to transition operations to other sites, leveraging existing infrastructure and reducing costs. The plan ensures no disruption to production or shipments, with full transition expected by the end of July 2022. Approximately 230 employees will be impacted, but the company will provide career counseling and transitional support. The move aims to position HEXO towards becoming cash flow positive.

HEXO Corp has announced strategic agreements with Tilray Brands to improve its financial position and operational efficiency. The partnership aims to save up to U.S.$80 million within two years through shared services and production efficiencies. HEXO will also enter a C$180 million Standby Agreement with KAOS Capital to support growth initiatives. These actions are intended to accelerate HEXO's transformation into a cash flow positive business within the next four quarters. Deal closing is anticipated by May 2022, pending necessary approvals.

HEXO Corp reported significant progress on its capital structure, focusing on strengthening its balance sheet and operational efficiencies. The company announced a proposed strategic alliance with Tilray, aiming for $50 million in cost synergies. Key financial highlights include a 61% increase in net revenues to $52.8 million in Q2 2022 and improved adjusted EBITDA. However, HEXO also recognized $616 million in impairment losses. The "Path Forward" plan anticipates generating $172.5 million in incremental cash flow over two fiscal years, while a restructuring of senior secured convertible notes is underway.

HEXO Corp plans to release its financial results for the fiscal quarter ending January 31, 2022, after market hours on March 17, 2022. A webcast for investors will follow on March 18, 2022, at 8:30 a.m. ET. The company, recognized for its innovative cannabis products, serves various markets, including Canada, Israel, and Malta, and recently acquired Redecan and 48North, strengthening its recreational market share in Canada. HEXO operates under multiple brands and has continued to expand its reach through strategic partnerships and acquisitions.

HEXO Corp (NASDAQ: HEXO) has announced that HT Investments MA LLC, the holder of its senior secured convertible note, has waived rights related to a breach concerning the company's Adjusted EBITDA for Q1 2022. This waiver follows a notice of default due to failure to achieve positive Adjusted EBITDA by January 31, 2022. The waiver is effective until May 17, 2022, or the termination of a proposed transaction with Tilray, which plans to buy the note.

The current outstanding amount on the note is $208.67 million, down from an initial $360 million.

HEXO Corp. (TSX: HEXO; NASDAQ: HEXO) announced the successful election of all seven director nominees during its annual general and special meeting held on March 8, 2022. Notable results included 100% votes for four nominees, while Hélène F. Fortin and Peter James Montour garnered 95.17% and 93.37%, respectively. Additionally, other resolutions were approved, including the reappointment of PricewaterhouseCoopers LLP as auditor and an increase in the maximum number of directors from ten to twelve. HEXO continues to strengthen its position as a leading player in the Canadian cannabis market.