Risk versus reward What's baffling me is that Hexo had the ATM at their disposal. Although not popular to use, why didn't they simply do a reverse split and then issue shares to pay off the debt. The pain for shareholders would have been severe but they could have avoided bankruptcy. The RS should have been done when stock was above $1.50. It would be brutal to the float if they did it now. Given the fact that they didn't go down the RS path, makes me think the debt issue is close to being resolved through negotiations with lender.