HEXO Equities Warrants Exp 2 Apr 2024 T.HEXO

RE:QUINLASH LOOK - CONFIRMS YOU KNEW O ABOUT STOCK TRADING!!

[VeritasVern]

In other words, Hexo is fukced - losing market share and unable to clean up balance sheet. They are down to $14.2 million in cash from $67.5 last Q, a decline of almost 80%. So they will not only have to do a 20/1 but also more massive dilution with the standby equity purchase agreement with KAOS. Here is what is said about that.

"The Standby Agreement permits HEXO to demand that the Standby Party subscribe for an aggregate of $5 million of common shares per month over a period of 36 months for aggregate proceeds of up to $180 million over the term of the Standby Agreement (the “Standby Commitment”).
The common shares to be issued under the Standby Commitment will be issued at a 7% discount to the 20 day volume weighted average price of HEXO’s shares on the TSX at the time the demand is made.

On June 14, 2022, the Company announced that, in view of the Company’s current share price, the Standby Party had formally agreed, for a period of three months, to reduce the minimum price condition included in the Standby Agreement from the CAD$0.30 to CAD$0.10 per share. This will ensure the Company may, during such three month period, draw upon the financing commitment (the “Standby Commitment”) contemplated by the Standby Agreement even if its share price were to fall below CAD$0.30 per share.

Quietinvestor wrote: "the Company announces that it is entirely withdrawing its previously issued guidance on operational synergies and expected incremental increases to cash flows for the 2022 and 2023 financial years, and there can be no assurance that the Company will in the future decide to provide any guidance whatsoever with respect to any operational, financial or other measure."