240 million dollar problem is not going away.... tick tockDue your own DD - HEXO has a major problem. Do you believe they will show a positive EBITDA next Q? I for one do not. Too many dispensaries near me are barely carrying any HEXO products. Their revs next Q will likely be stagnant save for 3m Redecan and 48M - what does an extra 8m do to their bottom line? Very little. Better hope for a late Santa visit.....
https://www.cantechletter.com/2021/12/more-pain-for-hexo-says-atb-capital/#
excerpt:
Gomes’s biggest concern with HEXO is the company’s reliance on equity and/or debt issuance, as HEXO’s free cash flow was a $79.1 million loss. HEXO has US$241.6 million of principal outstanding under its Senior Secured Convertible Note, though it would immediately become due if HEXO does not attain positive adjusted EBITDA by the next quarter under the terms of a default event.
Reading from the pumpers here who are blinded by the reality of the cash situation HEXO is in is a great way to loose money.... You never know anything can happen. However one would think with this issue ongoing for as long as it has been if there was a palatable resolution it would have been acted on by now....
Is HEXO the first big LP to go BK? What does Molson pay for the minority Truss ownership that HEXO holds? Outside of the Redee tech is there anything of value here? Greenhouses are a dime a dozen right now. The debenture holder if I recall correctly is the first loss payee in the event of BK.....
Good luck!