BLACKROCK Municipal Income TRUST V.BFK.P

RE:Why I Hold HEXO - Long

[RandomGuy25]

It is not a good use of my time to respond to you. I used to be angry when I read your posts. Now I simply feel incredible pity. My honest recommendation is that you speak to a counsellor who can assist you in recognizing the reality of the situation you are in, and the investment prospects of you and your family. 

Here is the sad reality of what has now happened: Hexo is within inches of simply being able to pay off High Trail. And yet they are doing this self-destructive deal with Tilray. Why? I think it must be some combination of insanity, idiocy, and corruption. Everyone will simply feed at the trough of the residual value of Hexo and squeeze it until there is no economics for any of the public shareholders.

What is the evidence that this entire thing is a corrupt sham of a transaction? Because if Kaos f*cking capital truly had the money for the equity backstop, they would be stepping in to do a better version of the Tilray deal.

But as it is, they have blown up this business. WALK. THE. F*CK. AWAY.

Do you understand? Walk the f*ck away.

Give the f*ck up.

They have destroyed the wealth of you and your family. It is not recoverable. At least not with this Tilray deal.

Do you know how quickly they could do a better deal right now? Easy:
1. $130m of cash on balance sheet. 
2. Will be USD160m of High-Trail debt remaining, or USD176m with premium, and then CAD224m.
3. So there is net debt (excluding Sundial) of <CAD100m. 
4. So if they raised CAD100m right now, over the next 30 days, they could pay off all of High-Trail.

And yet KAOS is putting up this equity line for significantly more than that, and they are giving Tilray $1.5m a month, and 37% of the equity.

Who is getting paid? Tilray. Lazard. High Trail. Kaos. And what is Kaos getting paid for? A scam backstop. It is a scam. They do not have the cash for it. If they did, they would be putting up a convert deal of CAD100m that would result in full payoff of High-Trail.

And you know what, I know who would be willing to do that CAD100m deal to payoff High-Trail as well. And it would be far less punitive than the current deal.

Know why it is not happening? BECAUSE EVERY F*CKING PERSON IN THE ROOM IS GETTING PAID EXCEPT THE PUBLIC SHAREHOLDERS.

Do you understand? Do you f*cking get it? I would pay for a combination of a therapist and a financial counsellor for you if I could. Honestly. I am filled with pity and sadness for your position. You have been f*cked by a combination of the ego of Sebastien and the sliminess of every banker and financier and scumbag in town. And I get that this is depressing for you and you cannot accept it. But that is the truth. The problem with you telling people that you are long is that other people may not understand everything else I have laid out. They may not understand how f*cked the capital structure is, and how the public is getting reamed by every person in power here. But I do. And you should too. I read the agreement with Tilray. The same way I read the Secured Note before it. 

 

quinlash - (4/20/2022 11:26:21 AM)

Why I Hold HEXO - Long

Doing my best not to "pump" the stock however I do own shares in the company, here is why:

 

- I had seen Cannabis Legalization as being a strong possibility in 2020 however we had the fed governments turn their attention to C-19 over everything else in 2020/2021.  Now that C-19 is being downplayed and restrictions etc are being lifted I expect Cannabis legalization to be back the table as part of Econmic recovery programs / tax revenue and job creation programs.  C-19 lasted MUCH longer than I ever expected however I went in with an extended timeline I was willing to extend further if need be.. turns out it was indeed needed.

 

- HEXO Corp has a Fortune 500 Partner, Molson Coors, and is partnered with them twice which gives them access to a large internation distribution network

 

- I have tried the products and very much appreciate the medical applications and the rec side is very good as well.  I will admit I am more of a medical user than rec however I did have rec users review the smokable products etc for me.

 

- The company noted a Fortune 200 partner is in the works, this is of interest and will bring a whole ton of investors into the stock if / when it is disclosed formally to the market

 

- HEXO Corp is tracking well toward profitability with strong margins on sales, they can afford to get into a pricing war with competition if one should break out and HEXO Corp can win that fight while remaining profitable.

 

- US Cannabis Legalization is a WHEN not an IF, once the US Fed legalizes the Sector will likely be deemed as "The Next Big Thing" for investors and I prefer to be in early and wait for that to happen.

 

- Molson is partnered with Coke and Dwayne Johnson "The Rock" either of these players entering the Cannabis Sector will be a massive mover for HEXO Corp as both are household names and a deal involving Cannabis infused drinks will likely involve HEXO Corp.

 

- The Current CEO is from Molson originally therefore I suspect HEXO / Molson have a very strong working relationship and one which HEXO could benefit from.

 

- Lastly, as noted MANY times, I DO NOT DAYTRADE, I prefer a Dollar Cost Average approach over extended periods of time.  I realize many forum regulars are simply trying to get in and out on small / quick gains however I do not have the time and patience to make those trades on a daily basis.  I prefer to set price alerts for my buy and sell targets then simply trade when my targets appear.


When my next sell target appears I will be simply letting go enough shares to rebalance the investment and to further drop my Dollar Cost Average on the remaining shares.  Eventually I expect I will be sitting on my remaining shares with a Dollar Cost Average of Zero with profits set aside for either my retirement or additional trading down the road.
 

Best Regards,

Q

- Long on HEXO