RE:if HEXO can sell Reddcan half price at $500m it boughtThe amount of projected incremental revenue from the Redecan deal vs the price paid more than justifies the acquistion. You would need to be able to view the Price to Sales Ratios to see exactly the incremental benefit so that topic is worth your time to research.
HEXO did not pay a billion dollars for Redecan. The deal was VALUED around 1 Billion, actual cash out was apx $400 Million with the rest of the value coming from the shares issued vs. the SP HEXO was trading at during the time of the acquistion.
The Redecan products are strong sellers with the company noting that it is in the process of expanding the production facilities for those products and then launching those products into the US. The pre-rolls are a low cost / high margin product line (similar to cigerette sales). To let that portion of the business go to pay debt would not be ideal.
HEXO Corp is much better off working with Molson-Coors or Venture Capital Investment groups to secure the existing debentures while avoiding any sort of dillution to it's current investors.
JMHO
Q