HEXO Corp. (HEXO) Announces Proposed Public Offering

HEXO Corp (“HEXO” or the “Company”) (TSX: HEXO; NYSE: HEXO) today announced that it will be filing a preliminary prospectus supplement (the "Preliminary Supplement") to its amended and restated short form base shelf prospectus dated May 25, 2021 (the "Base Shelf Prospectus") relating to a proposed overnight marketed public offering (the "Offering") of units of the Company (the "Units").

The Offering is expected to be priced in the context of the market, with the final terms of the Offering to be determined at the time of pricing. There can be no assurance as to whether or when the Offering may be completed, or as to the actual size or terms of the Offering. The closing of the Offering will be subject to market and other customary conditions, including approvals of the Toronto Stock Exchange.

In addition, the Company intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the Units offered in the proposed Offering on the same terms and conditions.

The Company expects to use the net proceeds from the Offering to satisfy a portion of the cash component of the purchase price payable to the Redecan shareholders on closing of the Redecan acquisition and for expenditures in relation to the Company’s U.S. expansion plans.

A.G.P./Alliance Global Partners and Cantor Fitzgerald Canada Corporation are acting as joint bookrunners for the Offering.

The Preliminary Supplement will be filed with the securities commissions or similar securities regulatory authorities in each of the provinces and territories of Canada, and with the U.S. Securities and Exchange Commission (the "SEC") as part of the Company's registration statement on Form F-10 (the "Registration Statement") under the U.S./Canada Multijurisdictional Disclosure System ("MJDS"). The Preliminary Supplement, the Base Shelf Prospectus and the Registration Statement contain important detailed information about the Company and the proposed Offering. Prospective investors should read the Preliminary Supplement, the Base Shelf Prospectus and the Registration Statement and the other documents the Company has filed before making an investment decision.

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