Post by
9910LC on May 09, 2018 11:59pm
Why? Large cash position and now consolidation
I understand why small players want to consolidate:
- easier to raise cash when issuing fewer shares at higher prices.
- a higher share price could lend a hand for listing on other exchanges with higher share price requirements.
- helpful when acquiring other companies by paying for the business with shares.
But what is frustrating is that they have a generous cash pool and a great business - I am having a hard time understanding why they would consider a consolidation. Yes, my answer could be one or more above, but this is frustrating.
Still a cannabis sector believer,
me
Comment by
flyboy27 on May 10, 2018 7:03am
so close to legalistion, it would be unacceptable for the company to reverse split . they need to build the value with sales and production! no artificial share price inflation, so we can list on Nas.of Tsx. do it right. where is all this coming from?? what did I miss?
Comment by
Pogo3 on May 10, 2018 7:11am
You didn't miss anything. It's just another way to shake more shares out. Legalization is coming in June and then there will be lots of positive news on Hip. Hip is in an ideal position to take advantage of legalization and will excel from here. Stay long and strong and you will be rewarded.
Comment by
321Blastoff on May 10, 2018 9:07am
Maybe do some reading at Sedar ? April 26 Management Information Circular for instance.
Comment by
stockman48 on May 10, 2018 9:24am
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Comment by
9910LC on May 10, 2018 2:17pm
Blastoff: That is a novel idea to read the management info circular – how I missed that I am only kicking myself. Thanks for the reminder, as I usually do pick thru Sedar. In the future I will not be so lax in my DD. me