Zenabis Global Inc. T.ZENA

RE:RE:RE:RE:RE:At this point, as a long term shareholder

[mydogchach]

quinlash - (4/17/2021 10:42:02 AM)
RE:RE:RE:RE:At this point, as a long term shareholder

Jimmy713 wrote:

Spectra7 wrote:
Jimmy713. This new prospectus is, or should not be a surprise if you have followed Hexo and most importantly SSL and his vision. $ 10B over 10 years. Is the acquisition of Zena really needed??

I see your concern, Spectra7. Yet, I for one still believe that Hexo/Zena deal is urgently needed by both sides.
 In fact, it is needed by Zena even more, as the shareholders of Zena almost got roped by Sundial at that time. In reality, we just survived SNDL piracy by continuing our potential growth merging under Hexo ... 

 

The deal is good for both HEXO and ZENA IMHO.  Zena, although producing good products and selling well in QC etc,  ran too low on cash to make it to profitability.  HEXO (while still not cash-flow positive) is still able to get financing to enable them to expand operations and buy the time needed to make it to a cash flow positive position.

Both Zena and HEXO are now reporting EBITDA positive numbers (on an adjusted basis) while the largest players in the Sector (Aurora and Canopy) have yet to report even adjusted EBITDA positive.   

The price to sales ratio fundamentals indicate that shares for Zena and HEXO are grossly undervalued based on the sales dollars coming in when compared to Canopy.  Considering the percentage gain potential from these low levels to a level even somewhat comparable to Canopy the upside from either of these two stocks is massive.



The deal may be good for Zena - although I agree with Jimmy that they shoudl try and get a better price from Sundial.
The fact that Hexo has to raise more money and more dilution - after stating 3 months ago that they didn't - should tell you everything you need to know about Hexo management. It's hardly a positive to have to file a $1.2 billion  prospectus
Comparisons to Canopy are irrelevnt - it's like comparing Apple to Fred's Computers and AutoBody
and Hexo's PS Ratio of 9 is a red flag to anyone who actually knows how to read a PS Ratio.
A 1 to 1 ratio is very good, a 9 basically indicates that for every dollar of sales - you're paying $9.00. Pretty much all cannabis companies have bad PS Ratios - pumptarding Hexo's bad Ratio becauise it's better than an ACB is a misleading and misreprenstation of Hexo. 

Queenlash continues to pump Zena - because (by his own statements) he convinced his relatives to invest in 1 million Zena shares - and the relatives are getting nervous about  their investment.
Grandma want sthe $ 7,000 you took put back under her bed.