RE:RE:Ouff!!!. >> Hexo loses $298.2-million in fiscal Q2 << Ouff!!
You need to attach some accounting basics to it. More than 80% of this is due to impairment loss or in other words, write-off of goodwill/assets value. This usually happens when you have overpaid or overvalued assets in the past. For instance, Lowes bought Rona for $2B. A year later, Lowes was shutting down stores and took a hit of $1B for goodwill devaluation. Basically, Lowes ended up overpaying $1B for this acquisition. I'm sure there has been a few people that lost their jobs on the M&A team. As for Hexo, this is not as bad as I was expecting because if you think this is a major adjusment, I can't wait to see all the upcoming writeoffs for the other MJs. A company like ACB that did a sh%t load of acquisitions, the devaluation will hit the SP even harder than Hexo. I'm actually not totally disappointed with the ER. Hexo mentionned explicitely that cashflows is drying up very fast and further fundings will be necessary and those new financing terms will certainly impact the next SP.