FAQ

Answers to your Hexo-related Questions

How do I invest in HEXO?

Investments must be purchased on the open market through a broker or a self-directed online brokerage account. HEXO trades on the TSX and the NYSE under the ticker symbol HEXO. Shares cannot be purchased directly from the Company.

When are HEXO’s year and quarter ends?

Our fiscal year and quarter end reporting deadlines are shown in the chart below. A press release containing the date and time of our upcoming earnings call is issued prior to each call.

Period Period End Financial Statements Due by
Year End July 31 October 29
Q1 October 31 December 15
Q2 January 31 March 17
Q3 April 30 June 14

How do I change my address?

Investors may change their address through TMX Trust, HEXO’s transfer agent by following the instructions below:

Authorization from the registered shareholder is required to change your mailing address. Please provide the following details to help us identify your account:

Name of the company – “The Hexo Corporation”
Name of shareholder as listed on the stock certificate or Direct Registration System (DRS) statement
Previous address
New address
Send these details by:

Mail:

TSX Trust Company
100 Adelaide Street West, Suite 301
Toronto ON M5H 4H1
OR

Email:

tmxeinvestorservices@tmx.com
OR

Fax:

416-361-0470
Attn: Investor Services
TSX Trust
100 Adelaide Street West, Suite 301
Toronto ON M5H 4H1

Who is your auditor?

Our auditor is Pricewaterhouse Coopers LLP.

I have HIP warrants and I want to know what my options are with respect to them. How do I exercise my warrants? Are there plans to extend the expiry date for the warrants? Were the warrants adjusted because of the HEXO share consolidation?

HEXO Corp. (“HEXO”) acquired all of the common shares of Newstrike Brands Ltd. (“HIP”) in May 2019 on the basis of 0.06332 common shares of HEXO for every HIP common share. We did not acquire warrants of HIP and those warrants remained outstanding. However, following the acquisition, under the adjustment provisions for the warrants, each warrant became exercisable for 0.06332 common shares of HEXO rather than one HIP common share.

There is currently one class of HIP warrants that is trading on the TSX Venture Exchange, under the symbol “HIP.WT.A”. These HIP warrants have an exercise price of $1.00 each and an expiry date of June 19, 2023.

Note the other class of HIP warrants that previously traded on the TSX Venture Exchange under the symbol “HIP.WT” which had an exercise price of $1.75 and an expiry date of February 16, 2020 has expired and was de-listed from the TSX Venture Exchange.
Effective December 17, 2020, HEXO consolidated its issued and outstanding common shares on the basis of one (1) post-consolidation share for every four (4) pre-consolidation shares. As a result of the consolidation, the acquisition rights under the HIP warrants have been adjusted.

In particular, the number of HEXO common shares subject to the right of purchase under each HIP ‎warrant has been adjusted from 0.06332 of a HEXO share to 0.01583 of a HEXO share, and each HIP warrant is now exercisable at the exercise price of $1.00 to acquire 0.01583 of a HEXO share, rather than 0.06332 of a HEXO Share for which it was previously exercisable. No fractional HEXO shares will be issued and if a fractional HEXO share would result, then the number ‎of HEXO shares to be issued will be rounded down to the closest whole ‎number of HEXO shares without any additional compensation or cost.
As a result of such adjustment, 63.17 HIP warrants would have to be exercised to acquire one HEXO share, at an exercise price of $1.00 each and an aggregate exercise price of $63.17 (as opposed to 15.79 HIP warrants having to be exercised to acquire one HEXO share, at an exercise price of $1.00 each and an aggregate exercise price of $15.79 before the consolidation).
For example, if you hold 1,000 HIP warrants with the $1.00 exercise price and expiring June 19, 2023 and decided to exercise them, you would pay $1,000 and receive 15 common shares of HEXO (1,000*0.01583). This would mean you paid approximately $63.17 per share ($1/0.01583), without receiving the fractional HEXO share.

You have two options, you can choose to exercise your HIP warrants to acquire HEXO shares before their expiry date, or you can let your warrants expire.

There is no plan to extend the expiry date of the HIP warrants.

To exercise your HIP warrants, please contact your investment broker or brokerage to execute the transaction.

I have Zenabis listed warrants that trade on the TSX and I want to know what my options are with respect to them. How do I exercise my listed warrants? Are there plans to extend the expiry date for the listed warrants?

HEXO Corp. (“HEXO”) acquired all of the common shares of Zenabis Global Inc. (“ZENA”), effective June 1, 2021, on the basis of 0.01772 of a HEXO common share for every ZENA common share (the “Arrangement”). The TSX-listed share purchase warrants of ZENA previously trading under the symbol “ZENA.WT” (the “Listed Warrants”) remain outstanding. However, further to the Arrangement, the Listed Warrants have been re-designated as HEXO listed share purchase warrants and now trade under the symbol “HEXO.WT”.

As a result of the Arrangement and in accordance with the terms and conditions set out in the supplemental warrant indenture dated June 1, 2021 (the “Indenture”), among HEXO, ZENA and Computershare Trust Company of Canada, each Listed Warrant exercised after June 1, 2021, will be exercisable for 0.024610 of a HEXO common share (rather than 1.3888 ZENA common shares) at an exercise price of $3.82 per 0.024610 of a HEXO common share (or an effective exercise price of approximately $111.75 per one (1) whole HEXO common share), which represents an increase in the exercise price in a corresponding proportion to give effect to the 0.01772 exchange ratio.

The Listed Warrants may only be exercised in a sufficient number to acquire whole numbers of HEXO common shares. Any fractional HEXO common share will be rounded down to the nearest whole number and the holder of such Listed Warrants shall not be entitled to any compensation in respect of any fractional HEXO common shares which is not issued.

To give an example, if a registered holder of the Listed Warrants were to exercise 50 Listed Warrants after June 1, 2021, that registered listed warrantholder would be entitled to receive one (1) HEXO common share (being 50 multiplied by 0.024610, rounded down to the nearest whole HEXO common share), upon payment of an aggregate exercise price $191.00 (being $3.82 per exercised Listed Warrant), and, in accordance with the terms of the Indenture governing such warrants and the Arrangement, such registered warrantholder would not be entitled to any compensation in respect of the fractional HEXO common share not so issued.

The expiry date and, subject to certain customary changes included in the Indenture, the other terms of the Listed Warrants remain substantially unchanged and will be honored by HEXO in accordance with the governing Indenture.
For greater clarity, the Listed Warrants outstanding can be summarized as follows:

Date of Issue: April 17, 2019
Expiry Date: April 17, 2022
Old Symbol: ZENA.WT
New Symbol: HEXO.WT
Number of Listed Warrants Outstanding: 12,777,777
Exercise Price: $3.82

You have two options. You can choose to exercise your Listed Warrants to acquire HEXO common shares before their expiry date, or you can let your Listed Warrants expire.
There is no plan to extend the expiry date of the Listed Warrants.
Exercise of the Listed Warrants is not automatic. If need be, please contact your investment broker or brokerage to execute the transaction.

Other ZENA share purchase warrants
In addition to the above-noted Listed Warrants, there are other ZENA share purchase warrants that are not listed on TSX that remain outstanding and that are either governed by an indenture or a warrant certificate.

All registered holders of such other ZENA warrants have been notified of the Arrangement and of the specifics of the adjustments applicable to their respective ZENA warrants. In order to determine the adjustments made to their ZENA warrants following the Arrangement, registered holders of such other ZENA warrants should refer to the indenture or warrant certificate, as the case may be, governing their ZENA warrants, as well as to the additional written communications received from ZENA in connection with the Arrangement.

How can I access additional information on HEXO?

Financial statements and other regulatory filings can be found here and on www.SEDAR.com.

You can access our most recent earnings call by visiting the link on our home page.

Who is HEXO’s transfer agent?

HEXO’s transfer agent is
TSX Trust Company
100 Adelaide Street West, Suite 301
Toronto ON M5H 4H1
Phone: 1-866-600-5869
e-mail: tmxeinvestorservices@tmx.com

I lost my share certificate. What do I do?

If a stock certificate is lost, destroyed, misplaced or stolen, it must be reported to our transfer agent right away. You will be asked to provide written notice by email (tmxeinvestorservices@tmx.com), fax (416-361-0470 Attn: Investor Services) or mail.

TSX Trust
100 Adelaide Street West, Suite 301
Toronto ON M5H 4H1
It is important that you identify the name of the issuer (i.e. “The Hexo Corporation”), the certificate number(s) and number of shares in your letter. Upon receipt of the written request, the transfer agent will place a temporary stop against the certificate(s) to prevent any unauthorized transfer of the shares. They will send you the necessary replacement paperwork which includes the purchasing of a Lost Security Surety Bond calculated at a percentage of the market value of the securities being replaced and the completion of an Affidavit of Loss and Agreement to Indemnity.

Does your company have analyst calls?

HEXO conducts quarter analyst calls, which are open to the public after each earnings release. Details for the call will be published in a press release prior to the call. Our press releases can be found at https://www.hexocorp.com/press-releases/

Still Have Questions?

We're available to answer any questions you might have about Hexo Corporation, or its brands.
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