RE:RE:RE:RE:RE:RE:If you spend $1.5 billionquinlash wrote: This topic was covered in detail during the time which HEXO was proceeding with the 2021 acquistions however I will simply touch off it for those who know something about eariings vs sharecounts.
When HEXO did the deals they were likely doing so with a "projected sales figure" in mind. Again, the deals likely proceeded with the expectation that the US Market would open up sometime in 2021 or early 2022 as Biden had legalization as part of his political campaign.
"Projected Sales Figures" would have been added to fair market value calculations for total sales revenue vs total shares outstanding. The resulting ratio is called a Price to Sales Ratio for the company.
I had ran the figures for based on the reported sales from 2 of the 3 companies and projected sales on the third (Redecan). The projected sales could be verified for those 2 companies and justified the shares issued for each of those two companies as the resulting incremental sales lowered the PS-Ratio and thereby increased the value of each share issued for the deal.
Redecan data was not publically available (as the company was private) and data was only available through articles with currencies not always stated. Projecting sales and determining values based on articles proved to be less than ideal however sales have now been reported on HEXO's financials with the PS-Ratio data now being readily available on any decent financial site that provides research data.
That data is sitting there for all to research.
Do Your Own Due Dilligence
Q
- Long on HEXO
Here is the data + comparibles
https://ycharts.com/companies/HEXO.TO/ps_ratio