RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Dilution is coming in my opinion. However it doesn’t meanWell my friend it appears we are at an impasse....
Is the note holder first loss payee? Yes
Does HEXO have the assets to cover the note holders investment in the event of default? Yes.
Is the note holder concerned about recouping there investment? No.
The note holder does not care about HEXO they care about maximizing the return on their investment. That is in their best interest. Maximize their return.
Do they have a short position? Are they naked? Most likely Hedged at a level they are comfortable with.
Trade like them? How? Without knowing what exactly they are doing when they are doing it you will be late to the party standing all alone in an empty room.....
risk/reward - maybe you geniunely feel there is a sufficient reward? I have no idea what you are basing this on. The way I have been speculating trading is by watching the market develop. As in what products are being stocked in the country and where. Does their product have a following (7 acres did)? Where are they in regards to posting a positive return? If they fail what do they have that someone may want?
HEXO has redee machinery..... what else?
If they are shorting the cr@p out of this stock (possible) clearly they think this is a garbage stock, no? They do not care about HEXO they care about their investment. They have received 1/3 so far and by the time late March comes there will be a projected ~200 million dollar balance left. So if HEXO fails to post an adjusted positive ebitda and the remainder of the note gets called - Can HEXO sell something to cover what the note holder is owed?
yes. Touran77 wrote:
ridingrockets wrote:
1- read the contract - it is on HEXO to advise the note holder of any changes to the share count that could negatively impact the note holder. **As in HEXO does something that reduces the overall shares outstanding I presume. Yes the note holder is capable of tracking themselves but if HEXO were to reduce shares outstanding that would screw them potentially. As in it could cause them to go over the 9.99% amount. Unlikely HEXO were to do something to reduce shares outstanding at this time but can happen. The language is their to protect the note holder. Simply read the agreement. As I said this would be to protect them from going over 9.99% in the event they were up against their desired limit. Hmmmm...... Lets be real Touran they do not want to exceed the 9.99%
2- As you said, if they want shares as cheap as possible - therefore they will force payment. As forcing payments most likely results in large dilution thus dropping share price. They do not want to own 9.99% of HEXO otherwise they would have bought it at the time of financing no?
Cause the note holder can't time their buys to prevent a jump in SH? Instead they will create extreme pressure? I think you mean like what is happening right now. Extreme pressure... another all time low with no end in sight.... Hope you sold a while back and are waiting for your daily uptrends.....
You forget that Hexo had plenty of cash for a while. 60M reported in July. 140M USD raised in August. 35M ATM. If they were juste taking their 20M by months and buy shares, SP wouldn't have hurt for a while. Now they are getting low on cash.
You make good points buddy, I just don't think you are right.
Buying 20M USD into Hexo every month would drive the SP crazy, and would also result in daily/weekly/monthly uptrend, which daytraders love and would drive the SP even higher. Not at all in the interest of the note holder.
My opinion is that the note holder wants 9.99% ownership in Hexo.
If they thought it was a garbage stock, they would have never lend more than 400M. They want 9.99% but as cheap as possible of course.
Touran