RE:Too much dilution, unsatisfied long hereNEWBIEVESTOR wrote: Back when hydropothecary announced they had plans to build this amazing million sq ft facility that was already FULLY funded with the financings they had already done and I believe the share count was approx 140 million; i crunched the numbers and bought in the $3’s believing this had the potential to be a great 10 bagger.
then the $200millon financing with the warrants came. Ok sweet $200mil is a lot of dough they must be buying out another company or even better announcing an even bigger expansion! Sweet!
But we got nothing except every financials saying “$242mil cash” and a lot of unnecessary spending like $14 million on advertising.
then comes Molson, very limited details on what’s going with the partnership, but no problem here’s 10mil warrants thx
then the recent $65mil financing, wtf do we need this for? We’re supposedly making tons of cash from legal weed and already tons of cash in the bank
and now, 4 million bloody options??? This could of played out SOO much better if management kept the share count lower. This isn’t the end either, I bet hexo will keep generously adding to its shares.
The float is 260 million fully diluted now. I will be hoping for a good spike on financials and making my exit
I just read some of your posts in your profile and your nick is perfect for you, "NEWBIEVESTOR". If a company in the MJ sector wait to be fully profitable to use the money for acquisitions or expension, it will be already trailing the others. Yes, the insiders are also paid with options based often on perfoormance. We could have endless conversation how these people are too much paid but it is standard in all the public companies, not only the MJ ones. As many do, you think "now" while there is not even one year that the MJ is legalised. I would advise you to choose a mature company in another sector, instead of one who will be very profitable in some years. To each his own style and risk and obviously, the MJ is not for you.