Enterprise Value Hexo Aleafia
Cash: 149,773,000 34,559,000
Assets: 693,773,000 454,737,000
Liabilities: 137,760,000 83,959,000
Equity: 556,013,000 370,778,000
MKT CAP:672,000,000 156,700,000
Premium: 115,987,000 (214,078,000)
Based on this simple numbers comparison, Hexo is trading at roughly $116m premium to its actual shareholder equity. Aleafia on the other hand is negative $214m. Even if you write off ALL of the goodwill associated with the Emblem merger, were at -25,288,000. Okay okay... EEEEEEVEN if you pile on our convertable debt to those scales (which is already calculated in our liabilities... So its adding it twice), we're still only 6,447000.
It makes zero sense. Especially for the gap to be THAT wide. Of course there are other factors to determining enterprise value, but these numbers alone justify a severe undervalued rating for AH. SUUUUHHHHVVVEEEEEEERELY undervalued.
And then, when you consider the fact that we're about to be profitable, against the backdrop of an industry where 98% of companies are still trying to figure a path to profitability, it really puzzles you.
I know I know, every cannabis company investor says 'we're on the verge of not only positive EBITDA, but profitability", we know with next to utmost certainty that we're there with Aleafia.
Why we're trading at a negative multiple is absolute poppycock. Hogwash. Bonkers.
But you get the picture.