RE:RE:More dilution in the future!Queen's simplistic explanation for the rollback is true enough - the NYSE had suspended Hexo for havuing fallen under their $1.00 share requirement. Hexo had propsed an 8-1 rollback - but the backlash from investors was pretty storong - and they prcoeeded to 4-1.
Regardless, this explanation ignores what's actually relevent - and that's
why the r/s was required in the first place. Again, pretty simplistic - if Hexo had performed well - the r/s split to mainain the NYSE listing wouldnt have been needed because Hexo's share price wouldnt have dropped below $1.00.
How many 'good' companies do reverse splits? (if you say lots - then include the names)
But instead - through incompetent managment and bad business decsions -including the $300 million write off of the completely iditoic and unnecessary Newstrike affair, to the year end loss of $600 million - the share price dropped from $10 pre r/s to under $1.00 Less than a year later - Hexo's share price has dropepd from $14 to $3.00 - and the $3 is below what the share price ws when they executed the 4-1 r/s.
Same reasons - incompetent managemnt and bad business decsions.
quinlash - (8/27/2021 10:41:34 AM)
RE:More dilution in the future! Companies do not perform rollbacks just for the hell of it. The consolidation that took place in 2020 was required in order to maintain the NYSE listing, simple as that, it was clearly stated in the news release issued by the company. IMHO there will be no further share consolidations taking place as HEXO now has the funds needed to address the Redecan acquistion and fund the on-going work to expand the operation into the US.
JMHO
Q trader53 wrote:I believe that shareholders in general donot truly understand dilution at least not until it ravages their net worth. Hexo will keep diluting in order to add revenue and when it is done there will be one more rollback. Every shareholder has contributed to the redcan deal!!!