RE:RE:RE:RE:RE:Confused ....Zenabis transferred roughly half of it's $90 million long tem debt along with it's sale of it's Bevo propagation division (the only progitable division), still leaving a remaining $50 million long term.
Many Zena pumpers chose to ignore the fact that Zena also carried another $50 million in current liabilities
So I guess Hexo will assume Zena's short and long term of over $100 million to add to the $75 million short and $75 million long term debt shown on the quarterlies.
Total debt and liabilities: $125 million current liabilities and $ 125 million long tem debt
$250 million debt? Interest fees alone will eat any Net Revenue Zena brings in (Zena's YTD Interest Expense Q3 Sep 30 was $20 million)
So much for 'financial stability'
As for U.S. legalization - again, it has no effect on Hexo.
Hexo cannot sell cannabis in the U.S.
They should have bought a U.S. MSO instead of pos bankrupt Zena - and had immediate access to U.S. markets.
glta
CanadianKia - (3/19/2021 12:53:23 PM)
RE:RE:RE:RE:Confused .... Again, everyone should take everything below, along with all the positiviy from managment and make there own esitmates on where the price should be in a quarter from now.
If i look at the big players in cannibas, there doesnt appear to be any similarities between them and HEXO. Most over expanded too quickly. They are not on the same level of financial stability that HEXO is demonstrating over the past 12 months and dont have their foot in teh door in teh US and EU.
Again, this is all my opinon, but i would think the price can be in the $15 range in teh near term, especially if the US continue to push through with legalization (even if its not fully completed this year).
just my opionn.
Have a look at ACB and you understand why HEXO is sooo much better. Quietinvestor wrote:The results were OK, not good or great. Yes there was an increase in sales - about 10%, but if you look at the HEXO Management Analysis and Discussion on SEDAR, it will give you some reasons why. The HEXO announcement is only half of the picture, or truth:
1. HEXO had a 20M$ loss this quarter. This was unexpected - loss last quarter was about 4$M
2. HEXO has about 90M$ in long term debrt. This grew in the last quarter.
3. Cash on hand dropped about 60$ this quuater - they now have about $130M.
4. Beverages sales only increaed by $300,000. Many said it would explode, it did not.
5. As much as many talk about TRUSS etc, it must be noted that there are two Joint Ventures with Molsons, one in Canada and one in the US. They are standalone and will be reporting their own earning in the future.
6. Medical sales and wholesale dropped.
Hopefully this helps explain why the market was not too excited about the release.