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BLACKROCK Municipal Income TRUST V.BFK.P


Primary Symbol: BFK

BlackRock Municipal Income Trust (the Fund) is a diversified closed-end management investment company. The Fund's investment objective is to provide current income exempt from federal income taxes. Under normal market conditions, the Fund invests at least 80% of its managed assets in investments the income from which is exempt from federal income tax (except that the interest may be subject to the alternative minimum tax). The Fund may invest directly in securities or synthetically through the use of derivatives. The Fund's investment policies provide that it invests at least 80% of its total assets in investment grade quality municipal obligations issued by or on behalf of states, territories and possessions of the United States and their political subdivisions, agencies or instrumentalities, each of which pays interest that, in the opinion of bond counsel to the issuer, is excludable from gross income for federal income tax purposes. Its investment adviser is BlackRock Advisors, LLC.


NYSE:BFK - Post by User

Comment by DaveDavidsonon Jan 03, 2019 1:30am
80 Views
Post# 29180271

RE:Molson better take an equity stake in hexo soon

RE:Molson better take an equity stake in hexo soon
I do believe hexo can get someone to take an equity stake in the company but i doubt it would ever come from molson. That company is cash poor to say the least,  they would have to dilute or take debt to invest they have investors as well, investors that are far more conservative than us its not going to happen....

Luckily hexo is more than able to accept other offers or find other jv partners which SB alluded to in his most recent interview. There are a lot of people circling this industry right now and with all the problems that other companies have (aurora spread quite thin apha insider dealing if the allegations are true of course) Hexo is one of a handful of Canadian licensed producers that is appealing (i would add ogi and trst to that list, apha as well if the short attack was mostly fabrication).

That being said if the US legalizes sooner then expected lets say in the next 12 months it will become less likely that any big players are going to care about canadian lp's with a limited international footprint. If or more likely when the US legalizes if you thought the canadian cannabis shortage was bad everything will be basically sold out for years so anyone saying that current lp's wont be able to sell all of their product can eat a shoe in this scenario. So in other words US legalization in the near future imo would be bad for canadian lp's long term 5-10 years but very very good short term 1-3 years.
 
TLDR:
All of this to say your molson hexo equity stake is a dream it didn't happen it wasn't ever going to happen. Molson was never interested in putting money upfront into cannabis, and even if it was where is the money last i checked its debt is similar to its revenue they do not have money to spare. Their stock has been under considerable downwards pressure the last 2-3 years i doubt their investors would be very happy about money being put out on an unproven cannabis company in a new market a jv which has limited risk makes perfect sense for them.
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