RE:RE:RE:RE:sorry but ...M4DM4X wrote: PaoloJr wrote: Canmoose wrote: I agree with you but at $6 , issuing 800 millions $ of shares = outstanding shares of 330 Million
Obviously their will be some dilutions and evenutally once it makes money the P/E ratio will be considered.
Considering that the stock is evaluated at $6 with 197 millions of shares....
if you increase the number of shares by 67%, the stock should go down by 67 % at $4.
Unless the new installations built with the new money will be so profitable, the operations of the company , will generate a P/E ratio within the 20 times. or less.
4$ would be grand..but bye bye nyse listing...expect buyout
A company usually waits until their stock price hits highs before issuing shares, look at TGOD who made an offering last month at $6.85 as an example. I think HEXO would wait untill about $8-$8.50 range before offering, probably after NYSE listing and after their 1st ER post legalization.
In addition, why would you assume they'd use up the entire $800M?
Currently $800M can literally buy out OGI entirely, or both VIVO and FIRE and still have enough left to buy up a huge chunk of GENE as examples. I'm not worried at all about this shelf-prospectus because if they do an offering it'll add value in the long term.
For the record, at $6 HEXO is trading at less than 5x estimated 2020 EV.
ACB is trading at approx 20x their 2020 EV.
keep in mind every one whos gone nyse hasnt done well , i dont think its gonna make or break HEXO , i still see them @ 650 range..
you said "
For the record, at $6 HEXO is trading at less than 5x estimated 2020 EV."
thats horrible