RE:Financing announced tonight after close????Good points Keeler, so another private placement which entails more dilution. The dilusional long-strong accumulate holders refuse to see the risks. The question is who is willing to buy more shares of Hexo unless the pp is at a steep discount to the current sp. And as we have seen with past bought deals or pp, you can be in a negative position quite quick with a 4 month hold on a pp.
I think they haven't arranged/announced a pp yet is because they are likely having issues finding anyone stupid enough to buy in. If they can't raise money they are eventually doomed and would have less than a year before going bust.
Meanwhile Tilray is watching and will assume Hexo for pennies on the dollar within the next 6-12 months. I'm sure everyone remembers Hexo paid $1 billion for Redecan in a combination of cash $400 million dollars and shares, but the sad thing is that Hexo now has a market cap of $96 million.