HEXO - THIS IS THE REAL ISSUE https://www.marketwatch.com/amp/story/hexo-shares-fall-to-all-time-low-after-auditor-questions-companys-ability-to-survive-11635795734
Hexo faces a shortage of cash stemming from payment requirements on its $360 million senior secured convertible notes offering earlier this year, he said.
“Its cash needs are greater than what was previously communicated by management, and terms of its convertible debt deal are far more punitive than previously believed,” Zamparo said. “We believe another equity offering is possible, and recommend investors await clarity on the balance sheet and cash needs before becoming constructive on the stock.”
The debt holder has the option to demand monthly cash redemptions, up to $20 million per month if Hexo’s stock falls below $1.50, he said.