Hexo assets for saleSimple Simon indicated Tilray's Cash Flow would have shown better than it did - but funds they were expecting for the sale of a Hexo asset had not gone through.
Regardless - cash from the sale of an asset is a one time gain, not a revenue - so Cash Flow from operations would not shown any better a result with a drill down on the figures.
The below is copied directly from Tilray's financials released on April 9 - it indicates that the Kirkland Lake property sold.
So how much cash was Tilray talking about?
The 3 Hexo properties held for sale are:
-Kirkland Lake
-Gatineau production facility and
-Fort Collins warehouse
The Fort Collins vacant quonset if listed for $6 million.
The 48N property was formerly a provincial tree nursery, located in northern Ontario - with a 45,000 sq ft production facility. It's been for sale for some time.
The Gatineau faciltiy was state of the art, brand spanking new, 1.2 million sq ft facility - and was NEVER put into production by Hexo or Tilray. Simple Simon said it was going to be used to plant commercial produce - cucumbers, tomamtoes etc - but there has been no news whatsoever about that.
So if we guess $5 million for the sale of Kirkland Lake - and $6 million for Fort Collins, Tilray is looking for arund $15-16 million for Gatineau.
If and when Tilray sells Gatineau - that will mean that they have sold or closed virtually every Hexo facility they paid $250 million for. (Hexo's/Zenabis Stellarton and Atholvile facilties were lost to SNDL via bankruptcy)
SO - Tilray paid $250 million for a business that now contributes less than $10 million per quarter to Tilray's revenue, along with Hexo's uncontrolled COGS.
Hexo was just another example of Simple Simon's incompetent business decisions - and combined with the $225 milion paid to buy Medmen debt and $85 million for failed craft brewers - investors saw a waste of some $550 million. AND another example of how Simon and his CFO are feeding you a bunch commceral prodcue fertilizer.
From Tilray's financials,
specifcally Note 3 Capital Assets - page 8.
Assets held for sale consisted of the following:
February 29, 2024
Land $ 1,380
Production facility 20,821
Equipment 6,437
$ 28,638
On June 22, 2023, the Company acquired HEXO and recognized the Kirkland lake property as held for sale on the acquisition date, see Note 7 (Business combinations).
It is expected that the sale of the property will close during the fiscal year ended May 31, 2024.
During the three months ended February 29, 2024, the Company classified its Quebec cultivation
facility and the Fort Collins extraction facility as held for sale. Through the assessment of facility capacity utilization, it was determined that these facilities would
be exited and held for sale.
It is expected that the sale of these assets will be completed within twelve months from the period ended February 29, 2024.