RE:hey quinlash - Tikray (over)paid for Hexo, spendingKeeler wrote: $250 million on the company that would have had to declare bankrutcy if not for the acquisition.
This is not disputed - and reflected in Tikray's filing.
I've told you before that Hexo accounts for less than $10 million Net Revenue
When you subtract the Cost of Goods Sold (60%) required to produce Hexo products, you're left with a Gross Profit of $4 million quarterly.
From that $4 million Gross Profit - Operating Expenses are then deducted to arrive at a NET LOSS.
Tikray investors spent $250 million on a company from which they will NEVER recover the investment. They did just as well with Hexo as with the $225 million spent on Medmen.
Meanwhile, Simple Simon has taken in $66 million compensation in the last 3 years.
Score:
Simple Simon $ 66 million
Investors zero (who knows what the actual net losses have been)
You realize that some shareholders would not know how to have come to this conclusion or anything like it.
This would not be on Tilrays website or explained in any press releases. But even if they were to jig it to be positive say 1 million per quarter. That time frame is longer than any of us are gonna live even if Elon Musk gets us some cryogenics.
Thanks for explaining this in a simple form that should make it easier to understand.