Reply to KeelerFinally! You've actually posted something that's really interesting & relevant to discuss. Your never ending 24/7 spam-MO-rama & Tug-O-War with your arch nemsis Whiplash was (actually present tense!!!... HAS BECOME!!! lol) becoming nauseating & tiresome enough to put off investors from ever coming back or even commenting on this forum. That includes Mr. Whiplash's diarrhea filled diatribes of course. Is it you or Sir Whiplash who is dark black on the left side? LOL. I digress here.....soooo let move on!
As for your query, if that was an actual query asking someone else's "opinions" and not a sarcastic post just to rub more elbow grease into the ladyboi Whiplash, then i'll give you mine (if you don't mind of course) with regards to your statements below....
keeler wrote"
My question then is - how exactly is Hexo better off now than when High Trail held the debt?
They aren't.
You completely right they aren't better off, fianancially that is. In actuality, it may cost them much more in dollar terms over the long haul. If one looks at it only superficially of course! So you must dig deeper to get the real answers. Once you do that, you'll see that they bought something "very valuable" which they probably didn't have enough of with High Trail. And what is that my Black&White faced friend? Well, "TIME" precious TIME my dear Watson!
This deal simply delayed Hexo's inevitable bankruptcy or acquisition by Tilray.
Tilray will NOT be paying .40 cents a share if they acquire the other 50% - how can anyone argue the logic pf their paying a premium for a bankrupt company that would otherwise just fold.
That's RIGHT!!! D-E-L-A-Y-E-D !!! Delayed enough so the "important insiders" which were heavily vested can delevared thmeselves & exit with minimal losses. And this requires a lot time to do without raising suspicions. As for Tilray taking over "HEXO" completely, well, that was inevitable & probably an arms length condition for the terms of the "deal" and for Tilray buying up that toxic debt. As is the .40 set price clause they put in i'm afraid. Which isn't that far fetched if you're an insider and you know what's about to happen. This deal was purposely structured this way for two reasons, to save Hexo from certin BK and Hexo insiders out & to give Tilray something in return for that favor. All the HEXO infrastucture/market share already in place & ready to go.........
Is it worth the $500M+ Tilray will have paid in the end to get Hexo? Probably not. Not by a long stretch. But if you've read into what Tilray's Ceo has "subtly" said in the past concering this deal and where his REAL roots are from, you'll understand why this happened this way and for why it was done.
I hope this clarifies your questions & some doubts you may have had.....
GLTA