HEXO futureHEXO is on its knees. It is bleeding cash in a manner that could eat through all of its cash balance.
Tilray could wait until Hexo runs out of money and make an offer they couldn’t refuse. Who knows, maybe that is what is happening now waiting till it hits $0.10
The bottom line here is that a equity sales program is going to dilute the hell out of shareholders. If they raise $40 million as announced, that will dilute existing shareholders by at least 30%
This means that you can expect HEXO stock to keep falling. It will drop until Hexo announces that it has raised sufficient cash to cover its burn rate. Moreover, once the market wants to know whether its turnaround is starting to work. The layoffs, cost reductions and revenue management plan have to be put in gear before HEXO stock makes a turnaround.