Zenabis Global Inc. T.ZENA

Hexo deal

[Jimmy713]

Just for the record

When Hexo acquired Zena, the deal was based on:
"Fully-Diluted Shares Outstanding" NOT "Common Shares Outstanding"

Meaning The deal is based on ~1.2 billion Zena shares (Included Warrants & rights, etc). So, do not lose sleep over who is converting Warrants and for how much ... etc

22m-23m Hexo shares will be issued.

As of Dec 31, 2020
Fully Diluted Shares Outstanding        Value
Basic Shares Outstanding                  799,983,791
Deferred Stock Units                              1,125,000
Restricted Stock Units                          19,803,018
Options                                                 27,182,883
Warrants                                             400,887,574
Conversion Options at $1.17                  3,287,179
Conversion Options at $1.91                  4,783,823

Fully-Diluted Shares Outstanding    1,257,053,268

[quinlash]

Good post, Jimmy, one minor clarification however, the merger of the two companies has yet to actually take place.  We may have investors sitting on the sidelines waiting to see if Zena gets a better offer or if the vote goes in favor of the deal. IMHO with board BODs in favor of the deal proceeding then it has a high likely hood of proceeding.  My own friends and family group are now

[AvInvestor]

Life saver for Hexo as well. They can now at least acquire descent quality stuff, as their current production is very poor. 

[quinlash]

Doesn't say much for Canopy and Aurora + others considering HEXO is maintaining it's number 1 spot for sales in QC, gaining market share across the rest of Canada and has the number one spot for drinks.

[AvInvestor]

Not true! Other QC LPs are steadily taking market share away. I believe the best selling 3.5g pots at the sqdc is the OMY brand. 

[quinlash]

What do you have for supporting evidence of this statement ? Zenabis (from what I am seeing) is doing well in QC, HEXO states that it has maintained it's number 1 stop and increaseing sales for both companies would certainly support their claims. Thanks in Advance Q

[AvInvestor]

read! Hexo's position is falling off the charts in QC. Soon they will overtaken by new and better local LPs.    https://www.reddit.com/r/TheCannalysts/comments/m0o3yk/sqdc_stores_top_unit_sales_week_of_march_1st_to/

[truthseeker1]

If the quality of HEXO weed is so poor how did they manage to gain such a large market share?? 

[truthseeker1]

pretty sure the hexo deal will go through but man once everyone saw we lost 30 million in 3 months the enthusiasm we saw here a month ago has sure  as hell totally disappeared 

[AvInvestor]

Simple! Bulk market/white label purchases from other LPs and relabelling them as your own brand. If Hexo gets access to better product (20%+ THC), it will reduce the need for Bulk market supply and therefore marginal cost will decrease.

[quinlash]

If you visit the HEXO homepage of OSC website you will see the HEXO UP! brand of products, they guarentee 20% + THC content already, have been for a long time now. You're welcome

[AvInvestor]

You still don't get it. Hexo is notorious for buying bulk products from other LPs in financial trouble and relabelling it under their own brand. The vast majority of their assets produce low THC low quality stuff. 

[JDSSDJ]

Somewhat true. On ABLC website they have 8 products listed. 6 are 20%  & under THC & 2 are over 20%.  The potency changes on some the flower from batch to batch. As I see the "Original Stash" (4 options) now has a maximum potency of 20% THC. A month or so ago it had a max of 25 or 27%. ? My kids & I split a Oz as they were selling it cheap $128 per/Oz.