RE:RE:RE:RE:RE:RE:RE:NewStrike Summary (Mar 13, 2019)Touran77 wrote: quinlash wrote: Dog, once again you are referceing things far into the past. The last time I seen anything in regards to HEXO layoffs was when they laid off contract workers wrapping up the automation of the Bellville facilty and that was simply a radio broadcast that (from what I could find) never did make a news article. If you care to post some links to support your statements you may be a bit more believeable, have anything negative from 2021 by chance ?? Probably not, as I can't find anything. Maybe you can find a loosely negative Motley Fool Article that has the MF Recommends HEXO tagged at the end
(Dec 9th, 2020) - Video HEXO Virtually Rolls out New Belleville Facility
https://youtu.be/nhTKnCRhzv4
HEXO did indeed shed one of the Newstrike production facilities back when it seen no need for it however they are now picking up smaller producers, in all likihood to support expansion into Europe as well as expansion into the US.
Is there anything else you can come up with ? How about getting your top-tier basher online to discuss things with me as you are not producing much that can't easily be de-bunked.
*yawn* back to my movie :P
Love and kisses
Q
quinlash wrote: ... and "Q" still makes the occasional type-o :P
quinlash wrote: Dog, the numbers you are referencing are over a year old, get with the program, HEXO has more than doubled it's sales since then, released top-selling drinks that are beating out Canopy Growth for the top position in Canada and are now being sold in the US through a jv with HEXO's Fortune 500 partner, Molson-Coors. HEXO is
now in a postion where it can expand the operation and product offering through the acquistion of smaller companies which it is picking up for pennies on the dollar. They are expanding into the US with the recent purchase of the production facility in Colorado.
You are, absolutely and 100%, living in the past and missing the full potential of the Canabis sector moving forward and how well HEXO is getting positioned to not only succeed in that sector but to be a top player, certainly in Canada, likely in the US and potentially even globally through the expansion it is doing into Europe.
Q
quinlash wrote: NewStrike was a good deal back then and it has proven itself every year afterwards through the sale of the UP! products, no one can dispute that
quinlash wrote: As noted, the Newstrike deal was back in 2019. Back then the store rollout in Canada was expected to take place at a much higher rate than it actually did, there was also news out speculating on US Legalization within a year or two, making that 2020 / 2021. In 2020 we seen C-19 occur and this turned federal attention away from everything except for addressing the concerns of the public related to the virus.
Due to slow store rollouts and delays in larger markets coming online HEXO opted to sell off one of the NewStrike Greenhouses. In early 2021 there was talk about US Feds legalizing Cannabis and the markets responded, including the SP of HEXO. Again we are hearing more on US legalization which may actually see progress in the coming days. HEXO appears to be making the moves necessary to enter the US Market with it's purchase of the facility in Colorado and is expanding the product offerings by picking up companies such as Zenabis and 48 North at substantial discounts due to these companies being in financial distress.
The times they are a changin' I expect the US will indeed legalize and HEXO will be positioned in time to exploit the new opportunities that the US market will present.
Q
quinlash wrote: The purchase of NewStrike occurred on March 13, 2019
Link to Original News Release (March 13, 2019)
https://www.globenewswire.com/news-release/2019/03/13/1752363/0/en/HEXO-Corp-to-acquire-Newstrike-Brands-Ltd.html
The deal provide HEXO immediate access to an addition 8 provincial supply agreements across Canada including Alberta that had the highest number of stores rollout in the shortest period of time. IMHO that was a great move on the part of HEXO in order to ramp up sales in the shortest period of time.
NewStrike also brough in the Tragically Hip as a partner, which, at the time, was a great way to get exposure for the company. Since then all indications is that the Tragically Hip and NewStrike parted ways. In addition to the supply agreements and the marketing aspects and the provincial supply agreements NewStrike provide HEXO with the UP! product line of smokables. This brand today is one of HEXO's top selling products and continues to bring in healthy margins.
Many speculated that the NewStrike deal was undervalued (at the time) as the Cannabis sector was red hot bad in 2019 however HEXO negoatiated a discount deal on the merger
Link to Article Indicating that HEXO / NewStrike Deal Massively Undervalued
https://seekingalpha.com/article/4249310-hexo-corp-acquires-newstrike-brands-is-massively-undervalued
Due to slower than expected store rollouts in Canada and a lower need for Cannabis production space, HEXO opted to sell off one of the NewStrike facilities so that the money could be used for other operational purposes. Selling the facility also allowed HEXO to avoid the cost of maintaining the facility as it was not needed.
Times change, now HEXO has drinks rolled out and is making moves to expand operations into Europe and the US, additional growing space could very well be needed to support these new developments hence the moves to pick up smaller companies (again at discount prices) as well as expanding its product offerings.
The new acquistions on the part of HEXO will increase their sales figures and hence demand higher prices from the market once the Zenabis and 48 North Deals complete. With the US talking about legalization now and so many states already having some level of legalization already in place it is not hard to say that it is just a matter of time before Federal level legalization is in place. HEXO is entering this market and appears to be ready to take this on... with award winning products, a diverse product offering and with the backing of it's partner Molson-Coors.
Poor little Doggy... I wonder what SP will it take for him to acknowledge that Hexo has been doing everything well in the past months?
He shorted Zenabis in the .05 to .06 range IMHO and his margin ratio will likely blow before HEXO hits $20. Anyone who has been doing even basic PS-Ratio math on HEXO can see that target price is well within reason, no timeline, but the target is definately there. Anyone monitoring the other forums will also see lots of chatter form investors refusing to sell below $20.
I wonder if Doggy ever looked at a stray dog on wondered what it would be like to live under a bridge, homeless, eating from a garbage can while covered in fleas... while HEXO longs are getting together for BBQs', enjoying Mollos and arguing about inboard and outboard motors and how many washrooms we actually need on a boat :P
I would bet Oldtimer needs one just for himself... lots of grab rails and one of those emergency call rip cords :P
LOL
Q