HEXO Equities Warrants Exp 2 Apr 2024 T.HEXO.W.A

RE:RE:RE:Time for another 180

[quinlash]

CougerMilk wrote:

quinlash wrote:

Hey Cougar,

Welcome back, it's been awhile.  Regarding your comment, the simple truth is this that Cannabis is still an emerging industry.  Not all of Canada has stores open yet, the US has yet to federally legalize and most importantly, all major players are still forming partnerships as well as developing and rolling out products.  All of these efforts take time and money.

HEXO is reporting adjusted EBITDA postive, that does not mean they are making a profit, they are getting closer to profitability than Canopy Growth and others however if HEXO wishes to rollout a new line of edibles, beauty products (etc etc) or purchase another company in the US then that will require cash.

Let's say HEXO read this board and decided that they would not raise any funds... this would essentially prohibit the company from developing new products or doing just about anything until they turned cash flow positive, they would also need more time past that point in order to save up money to eventually be able to buy another company, expand the products etc.  if they were to do this then every company out there that did raise working capitial would be years ahead of HEXO with new partnerships, new product rollouts etc.

The question for investors is... do you want to be invested in a company moving towards profitability that is rolling out quality products and lining itself up for expanding the operation or would you rather have the company sit on it's hands with what it has and hope for the best while the competition grabs market share away from them ?

Personally I prefer a company that is developing products and expanding but that is JMHO

All the best

Q




 

CougerMilk wrote: I don't know if anyone at Hexo reads this board, but this message is for the company. Why go back to a failed strategy? The message of 2019-2020 was clear and should have been unforgetable. M&A & dilution: bad. Disciplined offence on product market: good. If those clear lessons were not absorbed and indelibly imprinted in the culture at the top, then change at the top is required. 

Others have said it too, it's overdue for  SSL to put his own behind the company. For the sake of shareholders, he'd better be the biggest individual subscriber to any issuance.

I am not holding Hexo stock at the moment, so perhaps I shouldn't be so worked up. But, I won't be back until there's 180 (again) - one that will last, regardless of the discount. 

 

 

 

Thanks Q. I am still upset by the Zena deal. Plus they have (or at least had) the cash for R&D and product deployment already. Maybe I am talking out of my rear here, but frankly I would be comforted if they brought Burwash back... anything to signal prudential lessons have not been forgotten. All the best.

No worries Cougar, I would suggest researching each of the BOD members of HEXO.  Combined the BOD has a very strong business background and considering they all approve the ZENA deal tells me that they see it as being in the benefit of HEXO.  I also have to trust in the BOD that this raise of capitial is indeed needed to stay competitve in the market and to ensure they can grab market share before other players like Canopy snatch it up.  

Coffee is calling :)

TTYL

Q