RE:Investors callLTStrategy - (10/31/2021 8:13:46 AM)
Investors call While many are upset at SSL, he would have done a much much better job than Trent did it explaining and reassuring.
Trent is by far not as articulate and wasn't prepared. The majority of his responses didn't answer any of the analysts questions so that did not help.
SSL did a great job at setting the vision. He's a visionary. It's not an operator. Scott seems to be an operator that will put together the building blocks from here. They seem to be well back up to ensure proper execution of the plan. Scott will be building a proper leadership team to make that happen. The fact that he was chosen is because we now know Molson has a plan so that is the reassuring part. Assuming all product sales equal zero, there is tremendous value for Molson to keep their partner to supply the products they need for the Truss drinks. Eventually, one could think that the Truss drinks on their own will be plenty to carry this entire business. Hence why Molson probably was ok to have Scott take the lead on HEXO instead of staying at Truss. This could also be a sign of Molson want to buy the entire business once things are in order.
Personally, I think Molson put Cooper in there because he's a trusted lieutenant that Molson loaned to the Truss JV to begin with. I think it's unlikely Molson would buy Hexo, Molson already has it's own issues tehy're working on cleaning up - they don't need a debt ridden cannabis LP.
BUT I think they WILL buy Truss out as soon as U.S. legalization happens.
- and they'll just rill that under the Molson umbrella, just like their hard selzer and Coke products.
At that time, Cooper will just roll back into a senior Molson position - and Redecan - er, Hexo - will find a new CEO (hello Peter Montour)
As for McDonald - I posted from Day 1 that the guy hasn't held a job for more than 2 years, except when he opened his mens grooming and barber supply company. Hexo went thru 4 CFOs in two years - qualified people who would not work for the mess SSL created - or do what SSL wanted them to do.
Trent was about the only kind of guy that would be a yes man for SSL and actually work there, so he was hired not for his financial management ability, but for his willingness to do SSLs bidding.
Just my opinion, the guy should have been gone along with SSL if he agreed with the 3 acquisitions and either never spoke against them - or just went along with them to keep his job.
I think they'll keep him for the transition, he at least has a basic familiarity of the systems (and the mess they're in) - and everyone knows this including him, but he'll be removed as soon as possible.