quinlash wrote: Interesting projections being tossed around, sounds more like wishful thinking on lows IMHO.
Here's what we know;
Hexo announced they would raise $40 mil in capital through Cannacord a few weeks ago while the stock was trading over $1.00. Cannacord managed to negotiate a share price of .77 and opted to go in with $46 mil rather than the announced $40 mil. Call me crazy but that sounds as if Cannacord was optimistic that they would see a return on their investment over .77.
Latest news is that HEXO is raising an additional $50 mil, again through Cannacord. That brings Cannacord's investment to apx $100 Million. The price on this one is $.90. So, again, Cannacord opted to inject capital into HEXO with the view that the investment would produce a return. This deal was struck while HEXO was trading in the U.S. yesterday with intra-day high of $1.25 CDN.
Last I checked .90 is higher than .77 therefore Cannacord actually moved their average UP with the latest financing.
So here's the 100 Million Dollar Question... when does anyone add to an investment OVER THEIR EXISTING AVERAGE ??
As the amount Canncord put into the company is roughly the same amount both times (46 mil + 50 Mil) we can rough out their new average of apx $.83
Maybe, just maybe, getting shares below Cannacords running average isn't a terribly bad gamble assuming they are injecting $100,000,000 Dollars with the expectation that there will be a profit in it for them.
Sometimes thinking about things can help identify a low share price.
JMHO
GLTA
Q