RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Dilution is coming in my opinion. However it doesn’t meanNah I don't really think you and keeker are one and the same. I wouldn't be surprised if you were desk buddies pre-covid though. Doesn't matter. Kind of like I do not believe you are a Canuck. Maybe you are? Doubt it but.... who cares?
As far as 'start up financing' and hedge funds. It would be naive to think it relates only to 'start up' financing. It is not relevant with HEXO at this time. What is relevant is what is going on with the Note and the impact it is having on the company.
Scott most likely came over from the standalone joint Molson majority owned company Truss to protect Molsons investment. Neither of us know the answer to this. I am of full belief he is here to protect Molsons investment.
Q1 they announce Trents pending departure and that he will stick around until a permanent replacement is found.... effective immediately an experienced 'restructuring' person takes his place until a permanent one can be found.... Ouch. Does not bode well. He is likely here for one reason and that is to work the books to try and get an adjusted positive ebitda. I wish him the best. Until then naive to think it will happen.
Want to invest in a speculative market? One needs to be willing to take their hits.... HEXO has a massive issue. One in which if there was a palatable resolution available to the board they would not be delaying their annual shareholder meeting with only selected voters voting on whatever (possible note resolution?).
IF they had a palatable resolution to their existing dilemma they would pull the trigger. There would be no selected share holder vote on it imo. Have you found the time to locate the 6 or more companies that are comparable to HEXO and have received something that resembles a proper premium on acquisition?
The best I have is 48N - not really comparable but good luck at finding a large cannabis company that was faced with the financial headwinds HEXO has.... There really is no comparable. 48N is likely the best one. The premium was based on basically the lowest SP - So if HEXO has more drop ahead prior to an acquisition ouch..... Good luck with your money.....
One last question - are you not concerned regarding the reduced pricing HEXO products have underwent in Ontario since basically the beggining of Q2? What about the headset link I provided that shows Wappa and Cold Creek Kush (Redecan Redees top PRJs) losing momentum over the last 90 days? What about Original Stash hash losing its hold on what was the top 4 spots in Ontario for the longest time. This is HEXOs bread and butter in Ontario.....
With a 10% reduction in Adult use sales from Q4 to Q1 and further signs of that segment being hit does not bode well for the adjusted postive ebitda they are seeking....
quinlash wrote: From everything I have read regarding An$on Funds and Zenabis I would not be surprised in the slightest if hedge funds that provided initial start up capital through the purchase of shares have used those shares to support shorting schemes against the companies they helped get off the ground.
The unforunate truth of the matter is that many of the Cannabis producers started off with Founding Fathers as their CEOs. While these folks had the vision and foresight to jump onto an emerging market and recognized the potential of Cannabis on a world stage I cannot think of a single one that had experience managing a publically traded company. Experienced CEOs would have seen the threat of allowing hedge funds to have access to large blocks of shares as well as to be prevy to too much inside information regarding potential market expansion or any on-going discussions with new Fortune 200 Companies (random example).
In the case of HEXO Corp we now have the Founding Father CEO replaed with the CEO from Truss Beverages who himself came from Molson-Coors. This may be an indicator that we now have the company being headed up by someone better equipped and experienced to manage the company. The new CEO being from Molson and Molson being partnered with HEXO Corp Twice for the development and sale of drinks likely means that the HEXO CEO has ready access to Molson-Coor's Upper Management if the event he himself needs to consult with trusted CEO's in order to address any challenges faced by HEXO Corp.
HEXO's new CEO also seems to have brought in a heavy hitter CFO that appears to be well experienced in restructuring. Together, the new CEO, the new CFO and the relationships with Molson Coors leads me to believe that the company
WILL INDEED present Long Term investors in HEXO Corp some very interesting options that will, as noted by HEXO Corp,
be to the Benefit of Investors.
In regards to myself and Keeler being the same individual... your speculation would be incorrect. I do (as time permits) try to directly address questions without any homophobic slurs.
Take care Rocket however I must add.. it's good to see that you are Googling things and doing some research on your own.
Q
ridingrockets wrote: Hey keeker urr i mean quinn
Are the shares that the Note holder receives restricted or freely tradeable?
They take what they get from HEXO and sell them - they can build a short position without shares received from the note..... Forcing dilution all but guarantees the short position they have, if they have one, will be safe.....
Google wheaton (former name of auxly) and mmcap
or better yet read this - it is old but extremely relevant....
https://financialpost.com/cannabis/how-a-handful-of-hedge-funds-cornered-cannabis-financing-and-made-a-killing-in-the-process