RE:RE:Hexo will become the biggest company for MMJThe closures have begun. There will be significant writeoffs on those acquisitions and they will have to record them in Q1, as they are now known. Writeoffs and operating costs will be horrific in Q1 IMO. Sales will be up. See my post below from Oct 27 below. Going to take a few quarters to work thru this, the share price will remain where it is until then. IMO
From October 27
Hexo won't go bankrupt. IMO however, its going to take more than a few quarters to digest all these acquisitions. Then they have to realize on the projected synergies. Look how long its take Aurora to right size after their acquisition binge. And if Hexo paid the exact price for the value received, which I would suggest is an impossiblity, then there won't be any writedowns required. Otherwise, they will have to adjust, keep in mind these are non-cash adj.
They bought sales, they will have lots of sales. The real challenge will be managing the costs and the bottom line. Its going to take time, and thats why your share price is at $2.
Skater