RE:RE:Reverse split, annouced 5 months agoIt is hard to say how the market would react. When $ACB did a reverse split, the market knew it was coming, yet the shareprice jumped 300% after a tiny dip immediately following the consolidation. Shorter seller's worst nightmare. Vern and co. are facing the risk that some counter move like that could happen to Hexo's shareprice.
Hexo's delay in consolidating suggests that, unlike ACB, the directors believe presently that the fair value of the share price should be securely above the threshold of $1USD by Dec or that news coming by then will lift it above that price. But, even if they have that view, they would still have to build in a plan to consolidate shares. The overall market can be unpredictable. Hexo's been dragged down by $ACB's troubles, even though it could benefit from that ultimately.