Gatineau pot producer Hexo closes $57.6M private placement

hexo
Hexo CEO Sebastien St-Louis.

Gatineau pot producer Hexo (TSX:HEXO) raised $57.6M in a private placement round on Wednesday.

As it began trading in the United States on the NYSE American stock exchange last week, Hexo said it was looking to raise $50.1 million in a private placement round underwritten by CIBC World Markets and BMO Capital Markets. The underwriters exercised an overallotment option of $7.5 million for an additional 1,155,000 shares.

The local pot firm said in a statement it will use the funding to finance its global expansions and R&D on new products. The company has previously announced plans to build out its European market presence from Greece and develop new cannabis products from an Ontario facility.

Hexo’s shares are trading 10 per cent higher over the course of week on the TSX, up 68 cents to $7.45 before markets opened on Friday.