Expert Analysis: Class of January 2019 OTC Graduates

By: Joseph M. Lucosky, Managing Partner Lucosky Brookman LLP

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Expert Analysis: Class of January 2019 OTC Graduates

Because the month of January was marred by the federal government shutdown, we only saw one company uplist from the OTC Pink onto a national securities exchange. This is the least amount of uplists in a calendar month in quite some time.

Below is a brief description of this company and selected information and observations of the path it pursued from the OTC to a senior exchange. For more information about the uplisting process, or any other questions or analysis, please contact Joseph M. Lucosky ( at Lucosky Brookman LLP or visit

January 2019 Graduate

HEXO Corp. (NYSE American: HEXO, TSX: HEXO)

On January 23, 2019, HEXO Corp. (the “Company” or “HEXO Corp.”) (TSX: HEXO, HEXO.WIT; NYSE American: HEXO), a consumer packaged goods cannabis company that creates and distributes award-winning products to serve the global cannabis market based in Quebec, Canada, uplisted from the OTC Pink to the NYSE American.hexo.jpg

The listing of the Company’s common stock on the NYSE American marks the graduation to a second major exchange in just a little over six months, following the June 2018 listing of the Company’s common stock on the Toronto Stock Exchange. Shortly after uplisting from the TSX Venture Exchange to the TSX, the Company also rebranded and changed its name from The Hydropothecary Corporation to HEXO Corp.

On January 30, 2018, HEXO Corp. closed a $149,500,000 public offering of the Company’s securities (the “Offering”), consisting of 37,375,000 units (each, a “Unit”), at a price of $4.00 per Unit. Each Unit consisted of one share of common stock of the Company and one common stock purchase warrant entitling the holder to purchase an additional half share of common stock. The warrants had an initial per share exercise price of $5.60, subject to adjustment, were exercisable immediately and will expire two years (2) from the date of issuance. This Offering was underwritten by a syndicate of underwriters led by Canaccord Genuity Corp. and Eight Capital and including Cormark Securities Inc., GMP Securities L.P. and Beacon Securities Limited. This helped the Company meet the NYSE American’s stockholders’ equity requirement of $4,000,000.

At the end of November of 2018, the Company announced it had filed a (final) short form base shelf prospectus with the securities regulatory authorities in each of the provinces and territories of Canada so that over the course of a 25-month period, HEXO Corp. would be able to make offerings of up to C$800,000,000 of shares of common stock, warrants, or other units of its securities.

At the time of the uplist, the Company’s share price was above $3.00, the NYSE American’s minimum bid price requirement, so the Company did not need to effect a reverse stock split in order to satisfy the minimum bid price requirement.

On the trading day prior to listing, the Company’s opening and closing share prices were $5.31 and $5.30, respectively. On the day trading commenced on the New York Stock Exchange, the Company’s shares opened at $5.60 and closed slightly down at $5.26. Approximately 1,604,489 shares traded on the opening day of the uplist.

For more information about Enochian Biosciences, please visit its website at or visit its New York Stock Exchange profile at

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For more analysis on the uplisting process, or any other questions or analysis, please contact Joseph M. Lucosky ( 732-395-4402 at Lucosky Brookman LLP or visit


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