RE:RE:RE:HEXO Paid 400 Million For RedecanTouran77 wrote:
SkyBlack wrote: First of all, 400 million in cash is absurd and secondly, the shares matter so don't try to hide the fact that they gifted them a few 100 million there too.
280M total shares right now.
Redecan has 70M.
Therefore Hexo diluted 70M/210M= 33%
Dilution of 33% with increase of 100% in sales (yep Hexo was at 25 and with Redecan only, they will be at 50) plus acquiring a company that makes money.
Looks good.
Tonto
That is certainly one way to calculate it, the other requires a bit more effort and involves the price to sales ratio math. You need to consider the total sales vs the total sharecount, as the PS-Ratio drops with the increase in sales the value per share goes up. I ran the math myself, the ratio drops as one would expect indicating that the shares of HEXO are futher UNDERVALUED in comparison to similar companies. I am comparing to Canopy as the companies (IMHO) are the most similar to one another
https://ycharts.com/companies/HEXO.TO/ps_ratio