A fair assessment of yesterdays announcementGood:
Cost of loan is 5%. Most governments are borrowing at that rate. It would be tough to get such terms at a bank
Shares have to be purchased at 30% of 2.36 USD
Delays debt repayment on loans in 2023 and partially in 2024
banks are getting loaded up with favorable paper at such a low price. likely means the stock is within 10 to 20% from the bottom
Regulatory environment is changing and favorable for MSOs and LPs
based on todays volume, we are likley seeing a significant amount of short covering
Negative
-likely means in the short term the Hexo purchase will have a negative impact on their cash burn
underwriters will have a short position
-Tilray will have to embark on austerity for the next
-They have to gain market share which will require margin compression or this could end up in a negative spiral as a going concern