RE:RE:RE:Friday Price Cutigalaaq wrote: Do you think the price cut is due to the recent, and expected future dilution, or are they worried about the company fundamentals, and the potential house of cards effect with all the acquisitions?
You already know the answer since you explained it so well.
Jefferies
** Jefferies says not convinced HEXO's acquisition of pot producer Redecan was the best use of capital, lowers PT to C$2.54 from C$5.97 ** Says recent raise to pay for the deal arguably confirms possible cash flow concerns; Hexo in August raised around $140 mln from share offering to fund the deal ** Says recent share progression across the existing and new businesses has been disappointing ** Out of eleven analysts, five rate the stock "hold", three "buy", two "sell" and one "strong sell" ** HEXO Corp agreed to buy Redecan for C$925 million ($738.52 million) in cash and stock in May ** Stock down ~35% YTD, as of last close
Can you imagine that Jefferies thinks like a lot of us, supposedly the bashers, but just realistic and not hiding our head in the sand.