RE:RE:RE:RE:Hexo v CanopyAs an investor in the cannabis space (mainly HEXO, but also a bit of APH and Khiron), I'd tend to agree that calculations like cash/equity or equity/share price aren't especially meaningful.
I am particularly dubious at relying on equity value as any sort of guide, because as a CA, I know full well the limitations of balance sheet valuations, especially in this nascent space and especially when a company has grown by acquisition through all-share deals. It's perfectly 'legitimate' to gross up the balance sheet with all kinds of intangible assets that may or may not have real value when push comes to shove, supported by share issuance on the other side.
Now HEXO has pretty much grown organically and it has no (or very little) accounting shenanigans in its financials, no bloated acquisitions etc. Plus, it has a relationship with Molsons and the Quebec government that are not currently reflected in equity at all, and neither are the value of its brands OR intellectual property - the last two obviously only get recognized by an acquirer in a purchase equation!
Obviously, over the long-term I will be looking for cold, hard cashflow per share. In the meantime, I am looking at brand, IP, management, current contracts. The fact that we have a war chest of a couple of hundred million, and not debt is also comforting. On the other hand, there is an opportunity cost to that cash sitting there doing nothing!