OTCPK:NWKRF - Post by User
Comment by
Bigbaboonon Mar 17, 2019 11:57am
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Post# 29497475
RE:A fair deal
RE:A fair dealDon’t forget the 1B$-5 year deal with Qc government and preferred supplier status. Hexo is the only Quebec homegrown MJ company. Government will take care of it. So its not all about growing capacity, but ability to convert this capacity into revenues. HIP is joining a train already growing at full speed.
I know no premium sucks and many of tou guys cristalize a loss, but that’s not the question. The question is : where is there more potential upside for your present investment : HIP as a stand alone or with Hexo. Your SP is trading sideways for 8 months now. Believe me, you will finally see it grow on a steady basis. Enjoy the ride.
DaBigRedCandle wrote: So, since we are brigning 42 000 kg to the 108000 kg that HEXO already has projected at full capacity, making it 28% of the total capacity when the two cie are merged. It become hard to understand that the deal only gives the HIP sharholder 14% of the cie after the merger.
I know that HEXO brings the Molson Coors deal to the table witch will probably generate hight margin product but on the other hand, we bring the Neal Brothers, witch will also generate high margin products, the hip as a strong marketing platforme and, most important, we open the reste of Canada to HEXO.
I belive that a deal around 22% to 26% of the combine cie would be a fair deal to both HIP and HEXO sharholders. That would meen a conversion ratio of 0.0995 to 0.1176 or a current share price of 0.73$ to 0.87$.
With the current deal, there's no reward for those who held the shares for a long time. Except thoses who bought under 0.47$ witch by the way, represent only 64 out of the last 340 traiding day. Those who avrage between 0.55$ to 0.75 will probably make some profit in the nexte year but not huge return like they shoud have. Its a bit frustrating that someone who bought HIP totday after the deal is done will have a better return than someone who took the risk of holding the shares knowing that a deal was on the way. Sad week it as been.