RE: Some numbers to keep in mindThe Cannabis Sector (not just HEXO) have fallen down well beyond any reasonable evalutation based on the fundamentals. Clearly the stocks are not trading based on fundamentals at the moment however these will come into play once the sector starts to get a bit more attention from things such as the progression of Cannabis Legalization in the US.
In term of the HEXO / Tilray deal, if we take it for granted that this will be approved then the new / bigger Tilray will still have one of the lowest sharecounts in the sector and will be going forward with the advantage of owning the Molson Deal currently in place with HEXO Corp. The drink sector is clearly of interest to Tilray brands so I am speculating that Tilray will make the deal with HEXO work even if they find themselves in a position where they need to improve on the offer in order to win shareholder's vote of approval.
This may not be of interest to day-traders and swing traders looking for a few percentage point gains however long-term investors may want to look beyond where daily price swings are and consider when we will most likely see progress in the US and plan for an investment strategy that fits (regardless if that is with Tilray / HEXO or any other Cannabis play).
Best Regards.
Q
- Long on HEXO