Tilray Brands, Inc. TLRY

Tilray

[shenty46]

Tilray investment in hexo looks like going in smoke

[Coloradobuff]

No they want hexo to go under so they can pick at the carcass. This is what they should have been doing instead of overpaying for the tilray merger when they were aphria. Once hexo goes many others will follow. Consolidation will be great for the winners.

[quinlash]

  Tilray put almost 1/2 a billion into HEXO when acquiring their debt through debentures.  I do not see them walking away from that money so I expect Tilray is prepared to proceed with a formal takeover of HEXO Corp.  If it is done at the price of the debentures that will now be .40 x 14 = $5.60.     Tilray is a Top Tier 1 company and so is HEXO Corp (there are

[Oldweed]

1/2 Billion of newly printed shares (shareholders payed) or cash? 

[quinlash]

No shares, debentures with a strike of .90 x 14 = $12.60, when converted it gives Tilray apx 48% ownership of HEXO Corp.  Tilray could go hostile and just buy out the remaining shares needed on the open market to move them to the necessary 51%

[Oldweed]

From what I unerstood, the strategy is TLRY would improve their balance sheet buy collecting interest on the loan and also buy selling wholesale to HEXO, also improving TLRY numbers at least for as long as HEXO remains afloat.This allows HEXO a chance to right size by closing facilities and have a better chance to stay afloat. That being said if TLRY were interested in HEXO then today would

[hankhenry44]

Yes. Let Hexo go bankrupt and buy it out of bankruptcy for pennies on the dollar. Just part of industry consollidation. Tomorrow is the last day of tax loss selling in the US. Will we get a bounce. May have been lots of underwater shareholders blowing out stock this past month!

[Paray99]

Yes, $6 in next few weeks.

[Positivelive1]

Dreams are sweet! Good luck with the $6.00!

[David01montreal]

This post has been removed in accordance with Community Policy

[quinlash]

Tilray is into HEXO Corp to the tune of 400 Million, if the CEO of Tilray was counting on interest payments as a means to make a profit then he would be waiting for years to see the ROI.  If the SP of HEXO Corp goes back up to anything remotely similar to the highs it had seen earlier then Tilray makes a killing on the debentures.  Oustide of that happening Tilray would have to take over

[Oldweed]

I believe the partnership deal allows them to maximize their greenhouses and not grow tomatoes, this should improve the books, at the same time prevent a price war as TLRY controls the pricing of the supply. The debentures provide as you mention a possibility to make a killing (wait and see) and while they wait HEXO pays some interest. If HEXO fails then TLRY is 1st in line to collect. Not much