ZenaTech Inc T.ZENA

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[Jimmy713]

From: Don Philippo

I checked Zenabis financial closely and they really had cash problems, i.e. massive future dilution would have been inevitable.

Zenabis has good products and great revenue growths, but unfortunately they are still burning cash, which they do not have.

Moreover the cannabis sector is pretty competitive with 500LPs and new product releases everyday.

I do not know if Zenabis is able to extract the most out of its potential without a partner.

You have to break the vicious cycle of dilution at a low stock price, otherwise the stock will not get any gains (despite higher market cap.) and the shares outstanding increase steadily.

In a nutshell: Zenabis is a great company and with fewer future dilution in the Hexo company you extract more of Zenabis potential.

By the way Hexo and Zenabis will have nearly 70m C$ revenue at year's end (assuming quarterly growth rates continue), i.e. at least 280m C$ revenue in 2022 (if no growth occures).
Moreover they are EBITDA positive and save money after the merger. Compare this market cap./revenue ratio to its competitors and you can see that they are way undervalued and have a lot of upside potential.

Furthermore Hexo is going to announce a U.S. partnership in the non-beverage segment soon as its CEO stated.