RE:RE:RE:diluting shares to pay for Zenabis?So - in other words, it wasn't an all stock transaction - like I said.
If you take over a pos bankrupt company and assume it's debt $20 million to Sundial, $50 million short term liability and $50 million long term debt, you paid stock and $120 million cash.
Doesn't really matter what the money is used for - the end result is the same, share dilution and more share dilution.
5 raises in 2020 - followed by a 4-1 reverese split.
Purchase Newstrike for $ 265 million - sell the greenhouse for 410 million FOR NO REASON and then write the whole thing off.
A couple of months later - buy Zena for $235 million
Obvioulsy - lesson learned
How long before Zena's greenhouses - are sold at a loss - and there's anotehr public offering becasue Hexo is cash flow poor.
CanadianKia - (5/11/2021 9:18:21 AM) RE:RE:diluting shares to pay for Zenabis? Technically, NO. They are claiming it can be used for multiple reasons, but i am asking if we all thhiink its purley to offload all the debt for Zenabis right off the bat:
The company expects to use the net proceeds from the ATM Program for general corporate purposes, which may include: costs associated with the company's U.S. expansion plans including the contemplated acquisition of a facility in the State of Colorado and its subsequent retrofitting and improvement; and capital expenditures, including potential capital expenditures to make additional improvements to the production lines at the company's Belleville, Ontario facility; and potential future acquisitions; and working capital, including replen ishing existing cash resources and working capital which will be used to fund certain transaction and integration costs and minimum debt repayments related to the company's proposed acquisition of Zenabis Global Inc. (ZENA.TO); and repayment of additional debts owed by Zenabis following the completion of the Zenabis acquisition. Spectra7 wrote:
you do read company NR's, right. Of course it's part of the Zen deal. Very clearly articulated on the original release...." ALL STOCK TRANSACTION "!!! ...why the question mark??? Cheers S7