RE:RE:RE:RE:RE:RE:RE:HEXO Paid 400 Million For RedecanPure out and out BULL$HIT Hexo took out about 360 million in debentures due spring of 2023 thats the only way they payed for redecan ;;;;;the part that killed me was how dumb redecan was to pay 7;53 per share and a month later hexo scum bag mangement is selling abother 140 million $$ in shares at 3.84 cdn;;
quinlash wrote: HEXO did not borrow money to purchase Redecan, they used cash on hand as well as cash raise through the sale of shares at $2.95 USD / $3.75 CDN. The number of new shares issued vs the incremental increase in sales more than justifies the additional shares being added to the float.
Shares issued through a capitial raise IS NOT a loan of any sort. The underwriter that purchased the shares invested in HEXO at the price they paid for those shares and would be looking towards the future for a return on that investment (AKA... an increase is SP value) over and above the $2.95 / $3.75 CDN. You can be assured that an underwriter understands dilution and would have taken that into account prior to purchasing $145 Million dollars worth of shares.
There is good dilution and bad dilution. Some understand this and obviously most do not.
Q