Molson Coors CBD-beverage partner Hexo closes CA$57.6 million share offering

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Hexo Corp., a licensed producer of cannabis based in Quebec, Canada, raised 57.6 million Canadian dollars ($43.7 million) Wednesday when it closed its offering of common shares.

The company said in a news release it will use the proceeds for global expansion and research and development.

The Quebec cultivator, which trades as Hexo on the Toronto Stock Exchange and NYSE made 8.8 million shares available at CA$6.50 a share in the offering.

Last August, Hexo entered a joint venture with Molson Coors Canada to produce CBD-infused beverages in which the brewing giant took a 57.5% stake.

Molson Coors said at the time it would have the option of buying a 5% stake in Hexo if the company’s stock hit CA$6 a share. Hexo stock was trading at CA$6.98 a share at midday Wednesday.

CIBC Capital Markets, BMO Capital Markets and Oppenheimer & Co. served as co-lead underwriters for the share offering.

CIBC and BMO were joint bookrunners.