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AUTHOR
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SUBJECT
23
member
2/28/20 10:25AM
Re: re-upping the short
22
for anyone who cares, i exited the rest of my HEXO and CTST shorts, and cut my remaining TLRY short in half today. Still keeping CGC (though TLRY now largest short of the group). nothing... login to read the rest
I have re-upped my short in HEXO and added to my ongoing shorts in TLRY and CGC. late last week we saw a partial capitulation from TLRY (cutting 10% of their workforce) and a full... login to read the rest
i closed half of my short at 2.05 avg today to clean up into year end. full disclosure, i still have a modest short position in this name as i expect the name to continue... login to read the rest
more highly dilutive financing - 50% effective discount to spot
HEXO raised $25mm (USD) at $1.67, a 15% discount to last. The issue came with 1:2 5yr warrants struck at $2.45 - which, using the last close of $2.04, are worth around $1.6-1.7 each (given... login to read the rest
Another terrible qtr. Clean cash burn was $80mm and the co ended the Q with just $73mm in gross cash (and ~$30mm in net cash, net of TL and excise taxes). ASPs fell 10% QoQ... login to read the rest
Re: Re: fairly shocking disclosure in PR announcing the $70mm convert closed
16
am i though? if a distressed co had $171mm not $71mm, they would say 'over $170mm', in a situation like this, no?
we find out in a week and change anyhow
fairly shocking disclosure in PR announcing the $70mm convert closed
GATINEAU, Quebec, Dec. 06, 2019 (GLOBE NEWSWIRE) -- HEXO Corp. (“HEXO” or the “Company”) (TSX:HEXO; NYSE:HEXO) is pleased to announce the closing of its previously announced private placement of unsecured convertible debentures for aggregate gross... login to read the rest
3Q earnings season in Canadian cannabis - quick update
Most of the larger Canadian cannabis plays have reported 3Q (ironically, not HEXO yet, that will be in Dec I believe), and by golly is there blood in the streets. Just to pick a few... login to read the rest
i highly recommend anyone looking at the space (katana, atlantic) listen to the HEXO call because it gives a great overview of all the challenges facing the industry.
I actually came away from listening to the... login to read the rest
Perhaps not surprising, but this is an unmitigated disaster. They burnt around $123mm cash in the quarter (I was expecting $70mm), and remember this is stale data (only to July). This was mostly a function... login to read the rest
Outside of HEXO, I am still short CGC (outright short) and TLRY (short calls) today. Both of these are much smaller (and not just due to performance) from mid-year. To kuppy's point, borrow is punitive... login to read the rest
I gave up b/c the borrow cost was too high, the puts were too expensive and I'm not the sort of guy to sell calls for a few % and risks a massive squeeze (which... login to read the rest
i have never seen a company complete a distressed/cheap financing, and announce massive layoffs, in advance of actually reporting the numbers - but this is what HEXO has done. i guess they really want that... login to read the rest
hey katana - vincent's points are good, there is no credit bid/bond floor here and borrow is 40% so yeah its tough to work out what the theoretical cost of debt is on an instrument... login to read the rest
HEXO rescheduled the CC for a few days (to next week) citing 'additional time required to finalize its year end filings', and also announced a $70mm private placement convert at 8% coupon, to a group... login to read the rest
no worries. here we go:
1. i haven't seen the Jefferies report, but the simple data from Health Canada is pretty irrefutable, and the very fact that HEXO is willing to cut prices so massively to... login to read the rest
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