RE:RE:RE:RE:RE:Buy to Cover Explained - $2.00 + Targetridingrockets wrote:
What about intentionally misleading people Q? What does that make you? You are a smart person. Read through your comments and it is easy to tell you have more than half a brain.....
So how is it that someone who knows the market as you do can reference how HEXO has paid off appx 1/3 of their 2023 debentures (via dilution) as a good thing yet imply that you do not foresee any further dilution on this company? How are they going to make the three payments due between now and their DELAYED annual shareholder meeting? Do they have sufficient cash on hand for both this and their day to day operations? Where is the money coming from Q? Please help us who are confused. I trust your advice!
They have three excess greenhouses from the acquistions in 2021 that they are selling off. We have yet to hear anything on those actually being sold yet so there will be some amount of cash coming in from the sale of those facilities. I cannot say I am familiar with the size and complexity of those so it will be interesting to see what kind of cash the company can pull in on those sales.
The CEO noted that the company is looking to work with investment banks for financing which will result in cash coming in without the need for shares going out. The sooner that takes place the sooner we can speculate that no additional shares will be needed for the debentures etc. If the debenture holders took shares over cash then it may be a sign that they are not throwing the towel in and will be holding in for better days.
Incremental sales in 2022 will again enable the company to address the 2023 debentures and we will have to wait and to see exactly how strong those reports come in at.
I am on the stock until 2023 or until the US Legalizes (whichever comes last) and have noted this numerous times. If you are trading with much shorter timelines then you can speculate on the shorter term developments, market trends etc.
I would suggest that if you are worried, want out completely etc then set your shares out for sale. You can set the price to sell at as high or as low as you like using a limit order and setting the expiry date for the trade out for weeks or months if you like. I have noted that I have done this myself but I am opting to sell only a fraction of my shares at a price over my average so that I can pull out the extra cash I used in 2021 for averaging down. If / when those trades complete my new dollar-cost-average will drop below where it was prior to the sale as I will have a few less shares with less cash remaining on those shares remaining.