RE:Just a question on DilutionRead over the notice regarding the 1.2 Billion Dollar capitial raise a few times, especially the part regarding pricing. There is zero mention regarding the price that the shares will be sold at therefore we do not know exactly how many shares would need to be issued in order to raise 1.2 Billion Dollars.
The News Release also mentions that the full 1.2 Billion would not necessarily be done in one single capital raise (although that would be very interesting to see a single underwriter invest 1.2 Billion dollars into the company). It is likely safe to say that the 1.2 Billion will be raised on an as-needed basis as HEXO identifies needs to have access to additional cash.
Research what you can regarding good dilution vs bad dilution. Dilution for the sake of raising money to maintain the operation is typically not responded to favorably by the market. Dilution for the purpose of adding capacity, new product lines, the purchase of another company etc are typically seen as favorable. The shareprice will respond over time to such moves but may not respond as you would expect immediately after such news is released.
Regarding your own position... that literally needs to be your call, or you can consult with someone you know personally in real life, a close friend, a family member, someone in the industry etc, whoever you work with on the topic should know something about the stockmarket and be able to suggest a timeframe for you to hold in for.
Hope that helps some.. weekends are great for research... try PS-Ratio Math ;)
All the best
Q
SBSneal wrote: Are we looking at massive share dilution here ? I had intended to increase my position because the cheap share price looked very attractive , up until this NR . I'm in this one for the long haul , I had HIP then HEXO swepted me off my feet , got screwed , so bought some HEXO to easy the pain . Bumpy road , a roller coaster ride , and back to a bumpy road or a down hill slide . Question is should I invest more now , or jump in another opportunity and try and buy more HEXO later ?