Aleafia Health Inc ALEAF

Hexo..Redecan, Zenabis and 48 north...and then AH!

[tovier]

When you look at the numbers, Hexo paid 1.2 Billion in takeovers for an increase of 14.7 Million in sales after they acquired 3 companies. This explains why Sebastien St.Louis was ousted for over leveraging the company he was running!

Correct me if I am wrong, Did we not have over 10 Million in sales last quarter and heading for a bigger numbers this quarter..and with a Market cap of only 40 Million? 

Why do I have a feeling that Benic and his team are actually running a legitimate business that will actually do well in the next few years? 

What the heck is going on with the Cannabis industry! SAD!

In the quarter ended Oct. 31, 2021, Hexo said in a news release, its acquisitions of rival cannabis producers Redecan and 48North added CA$14.7 million in sales.

https://mjbizdaily.com/hexo-promises-consumer-first-strategy-after-reporting-ca117-million-loss/

 

[sthinei]

Yeah it was the height of idiocy. Still I expect hexo will likely be able to post about 220 million in revs in the coming yearand the market cap only about 350 million. The foolishness is thd smount of debt they went into which in turn will be dilutive. Still Zenabis has a good foothold in EU Malta with this new move towards legalization taking place. Molson can look at what constellation paid for

[Toweringmars]

That was only two months of sales from 48 and redecan. Stupid high price they paid, but most of that was in overvalued paper. SSL was clearly chasing madness and thinking he could mastermind everyone. There we're many jabs made at him in that conference call / transcript. Things like, we're not going to buy unprofitable market share just to say we're #1... And thats exactly what he did

[sthinei]

Yeah tower. The CC had quite a big number of analysts tuned in and asking questions. One of them was about how the smaller nimble companies have been able to position themselves and take market share. Still I like hexo because as you stated those additional revs are only from 2 months worth of sales. After a full year hexo should be closer to $300 million in sales just via accounting for the full

[Toweringmars]

Agreed, it was nice to see that they we're able to convince about 1/3 of the deb holders to convert, but I was really thinking they would have already started acting on this plan. Its painfull to see them come to the table a quarter later (knowing what we all knew) with a plan... Its like... It took you 3 months to come up with such a shallow plan? Why havnt you been acting on it already? It

[sthinei]

Yes hthey should have had it fleshed out some more. In the meantime canopy exiting joint venture in Germany and paying out what it sounds like is about $170 million. Am I reading that right? Are they being paid or paying out. The ineptitude continues in had sector. https://finance.yahoo.com/news/canopy-growth-divests-pharmaceutical-c3-130000798.html