HEXO

ravenclawcutie666

I have also been hurt by HEXO. Thankfully I have only turned $430 to $115!

VoiceAlly

I had never ever bought a shingle share in HEXO but had been buying TLRY up until they diluted. At this point even after hearing good things I really don't add much on. Whenever I even hear HEXO I get sickened thinking about it.

mnpc

Yeah, but if your financial advisor bought you SQQQ as a buy and hold strategy, he's dumber than the financial advisor that sold me HEXO.

SuzyCreamcheezies

I'm not really familiar with such occurrences, but see that it's an MO for Tilray lately. With MedMen and HEXO, both companies seemed to be in agreement with the arrangement. DeGiglio seems to be "hostile" towards other LPs, at least from past interviews I have seen. Would this be considered a hostile takeover of sorts if VFF's c-suite/board weren't on board with the move?

KAESLAX

I imagine if it did happen, TLRY would just try to buy their debt (\~US$65M) like they did to HEXO.

cannasseurs

Now that the HEXO merger is complete, expect more M&A from Tilray as they try to consolidate the Canadian LPs

GeoLogic23

Check out Flora Growth's chart/volume today. Something's got to be going on with them? My suspicions around them are regarding the fact that **SOL Global (via House of Lithium)** put Kevin Taylor there as chairman recently. Flora Growth has a deal with **Hoshi International**. Luis Merchan (who left when SOL put their guy in at Flora), moved over to Hoshi International. Hoshi connects the SOL crew back to an old friend **Shawn Dym**. Dym's **Green Acre Capital** is invested in Hoshi and Fire&Flower, and Hoshi has execs from Aphria, Fire & Flower, and Mettrum Health all over their board. **Mettrum Health was a George Scorcis** run company, before it got bought out by Canopy long ago. Scorcis promptly went to lead **Liberty Health**. That's where all the **Aphria/Scythian/Liberty** drama originated leading up to the short report. Ok so we have SOL connecting back to Shawn Dym and maybe Scorcis recently with Flora/Hoshi. For reference, during the Aphria short report, Shawn Dym was with Adam Arviv at GGB when they faked the "hostile" takeover of Aphria. Well lets see: **Adam Arviv** recently took over HEXO, and right after he did Tilray bought HEXO's debt, bringing Arviv back into the fold. **George Scorcis** currently leads Entourage Health. After Arviv took over HEXO, they signed a supply deal with Entourage. **Scorcis is back.** **Andy D., Adam Arviv, and Serruya** (via Adam Wilks) are main guys at **TYSON 2.0**. Also recently signed a HEXO deal. **Andy D. is back.** **Serruya** has been back with Tilray for a while with MedMen, and re-joined when they partnered with Tilray. The person that just joined him at MedMen, **Ellen Deutsch**, not only connects to **Hain Celestial, but to the Scythian crew** as well. She spent 2.5 years at Stem Holdings in Florida recently. One of the few people on Stem Holding's leadership is **Roger Rai, who was with Scythian** back in the day. Not only that, but when Roger "Rajiv" Rai re-joined Stem Holdings recently, it was with **yet another Hain Celestial** representative, Daryl Simon. Take note, from the first link. I only discovered recently that **Renah Persofsky**, who is still with Tilray to this day, was one of the **original Scythian directors along with Vic**. I feel like the Scythian crew never left, they've just been biding their time in the shadows.

Evening-Cry1833

Uplisting doesn't mean GTBIF is instantly worth $20 billion in MCAP, if they are not profitable and efficient it will be another CGC/TLRY/OGI/VFF/HEXO type of moves. Once we get legalization, safe banking pass it will create short term hype and then the competition will increase and we will probably start to poor quarterly reports as we did with Canadian LPs and still are.

bananastock

I agree. Thank you. I'm just curious how the math works. What is the break even point if I were to buy a call? I also experienced this with a HEXO option that got converted to TLRY

GeoLogic23

I have an entire post I want to do about Adam Arviv, but I ran across something interesting while researching I thought I'd throw out there. **Adam Arviv is very associated with Eight Capital, and is also very close with the old Aphria crew.** Well I was digging into Eight Capital, and happened to run across **Timelo Investments**, because someone from Eight Capital went to their board. They actually let you download their entire portfolio to Excel. So I did, and cross-checked for cannabis-related companies. Out of **292 investments**, they have **exactly 4** related to our industry. Couche-Tard, Altria, Cronos Group, **and.....Decibel Cannabis??** Not only do they have Decibel randomly in their portfolio, but they have more than double of it compared to CRON (0.22% vs 0.09%). So that's pretty weird. But who runs Decibel? Oh, it's **Jakob Ripshtein and Shawn Dym** (chairman), who are two extremely influential Aphria execs from back in the day. Shawn Dym has also specifically been associated with Adam Arviv, back when Adam Arviv was leading the "hostile" takeover of Aphria after the short report. Adam Arviv co-founded Green Growth Brands, and Shawn Dym was a director as well. Aphria also funded Green Acre Capital (Shawn Dym again), who were subsequently investing in GGB. Ok so we have an Eight Capital linked investment firm with a weirdly large position in the old Aphria crew's company Decibel. Eight Capital has also helped finance most of the companies that ended up rolled up into HEXO (Arviv) and SNDL. Two of the other directors of Decibel are from companies SNDL rolled up. Shawn Dym's investment firm is also the 2nd largest investor in Fire and Flower (Couch-Tard one of the 4 investments of Timelo). So Shawn Dym is directly connected with Couche-Tard and Decibel, two of Timelo's random cannabis related investments. But where does Altria/Cronos fit in? If you remember, back when Dym was involved with Aphria, before Cronos got the investment, it was actually Aphria who was supposed to be partnering with Altria. If I had to make a prediction from all this, it would be SNDL buying Decibel Cannabis. Eight Capital is currently advising SNDL on their strategic arrangement with NOVA. So I'm thinking maybe once that strategic arrangement is settled SNDL might move on Decibel.

GeoLogic23

Can you please compare HEXO/ACB/OGI financials??

Blind_Willie_McTell

They needed to do (at the very least) a 10-1 here. Just rip that bandaid off and buy some more time. At .40uSD x 4, this only buys them maybe 6 months tops and then we're again back under $1uSD and doing another reverse early 2024 So tomorrow we open around $1.60uSD, should close the day under $1.50uSD, maybe $1.85cDN And no, this isn't meaningless. They will continue spiral down and struggle, the market isn't naive to what effect a reverse split has .. just ask the folks at ACB and HEXO :)

SuzyCreamcheezies

Carl's response gives me hope that Tilray will be cash flow positive this upcoming quarter, but as u/heliumbox mentioned, can it be sustained? The obvious goal is that the company will continue to be cash flow positive going forward. If they reach this milestone this quarter, without any financial shenanigans, you'd think that FCF from an operational standpoint would be achievable in subsequent quarters... barring unforeseen circumstances. I am also curious for guidance on revenue/cost savings from their recent HEXO acquisition. I don't recall them mentioning any immediate savings/plans/roadmap for HEXO, but an update for the next quarter would be nice, seeing as it will be just shy of three months on the books at that point. Perhaps the added revenue/savings will be a big enough boost for sustained FCF? Just my musings on the matter.

GeoLogic23

My fairly meaningless prediction for TerrAscend is that they will soon announce either a brand partnership with Tyson 2.0 or an acquisition of Cloud Cannabis in Michigan. I can draw a direct connection from every person who started Tyson 2.0 with the companies that have currently have deals with him (Columbia Care, Verano, HEXO, InterCure). The only person who is very involved with Tyson that I can't connect a deal with is Jason Wild of TerrAscend. His JW Asset Management has led a lot of Tyson 2.0's funding (along with SOL Global). The guy who leads Tyson 2.0 is Chad Bronstein. Both JW and SOL have led funding for Chad Bronstein's other main company Fyllo. Jason Wild also tried to add Chad Bronstein to RIV Capital's board when he unsuccessfully tried to take over RIV in late 2022. So of all people to have a deal with Chad Bronstein's Tyson 2.0, I would think TerrAscend would have one, but I don't believe that they do. Back to Cloud Cannabis. The Michigan single-state operator Cloud Cannabis is a smaller, random company with whom Tyson 2.0 has a partnership. Now Cloud Cannabis is the single client of the REIT Nova Net Lease, and Cloud is currently having issues with their financials. The President and CEO of that REIT is Tyson MacDonald (it's Tysons all the way down!). MacDonald led Acreage Holdings M&A when Canopy acquired them, then went to CFO of Cloud Cannabis, then went to lead Nova Net Lease REIT. Reminder that Canopy/TerrAscend are a thing. So we have TerrAscend not having a deal with Tyson 2.0, but being heavily connected to Tyson, Canopy Growth, and Michigan (via GAGE). Then we have Tyson 2.0 making a deal with a random Michigan operator who happens to have strong connections back to Canopy Growth's US expansion plans, which now include TerrAscend. I think TerrAscend needs to use the liquidity of uplisting to dilute and pay off debt. So saving a nice brand announcement with Tyson 2.0 would be smart to keep the stock price up after uplisting. Or the Tyson 2.0 partnership with Cloud Cannabis is just establishing connections, and TerrAscend will buy Cloud Cannabis after they raise some more money.

MDeCicco_

Just wanted to clarify. Tilray only bought into the Alpine and GreenFlash brands/recipes, and produce them in Colorado. It’s not a brewery, but they also got HEXO/Molson Coors production facility in Fort Collins

Substantial-Read-555

1 M sq ft greenhouse tkry got with Hexo. Even though they won't need it, I assume now the CEO mentioned that he is getting calls about renting to non pot growers. https://www.globenewswire.com/news-release/2019/04/01/1790463/0/en/HEXO-completes-first-harvest-in-its-1-million-sq-ft-greenhouse.html

KAESLAX

And that's after HEXO turned down their earlier offer to buy them at $2-$3 lol

KinkyGagarin

I have HEXO shares and it was purchased by Tilray. Tilray offered .4352 shares per HEXO share. In WealthSimple, I see Hexo was delisted. When/how will I see Tilray shares? Thanks!

SuzyCreamcheezies

Next month will be telling for Tilray. Will they report free cash flow without any accounting shenanigans, as has happened in the past? If so, can they keep and grow that income? I'm also looking forward to any guidance they might have, now that the HEXO deal has closed. A good 2+ months should be included on their Q2 report this fall.

Infinite-hold

Yup. They have no decency, and their greed has destroyed many. They sleep well telling themselves no one forced you to invest. Only invest what you can lose. Meanwhile they pillaged everything from average investors that saw an opportunity and wanted a better life. They’re soulless. MSOS that are OCF+ for years on end never deserved these valuations. They still don’t. On the other hand, companies like HEXO, ACB, and CGC should be where they are today. The market is simply doing its job. For years, Q over Q their financials were telling the story of a company that were incapable of turning a profit and would end up bankrupt. Ineptitude and deceit from management, is a their story.

stevenconrad

I found that narrative confusing as well... who cares how badly HEXO did in the past? It's about taking HEXO's assets and applying Tilray's management. This will further strengthen and/or streamline Tilray's production and distribution network, hopefully leading to additional cost-cutting synergy, too.

FoodCooker62

Thats why I found the HEXO acquisition so confusing. Theyre in the runup for most shareholder value destruction. I get that Tilray can cherry pick the most productive assets but on the whole Hexo speedrunned insolvency like few others could.

KAESLAX

I'm assuming you're joking, but for what it's worth, CGC has a lot more debt than TLRY has cash. They wouldn't be able to buy the debt like they did to HEXO. Also CGC presumably already has other vested interests (e.g., Constellation).

meparadis

Ok so today Questrade decide to inverse TLRY and HEXO daily P&E. Anyone else has this weird bug?

meparadis

HEXO is way worst if it can cheer you up

Blistorious

Again.. just from my memories.. the latest were GNLN, HEXO, ACB, AGFY, IMCC.. and how worked that out for them? Yeah but keep pumping that this is a good thing. For sure it is a good thing for the shorter just again more room to fall. You do know that there are sectors where they do stock splits and the price is pumping even higher? That's what we hoped for but unfortunately we were all wrong more than two years. If there is a weedgod we will make a few bucks back but we were just idiots.

GeoLogic23

Interesting, thanks, I'll have to look into it more. Given Tilray's connections to OGI/CWEB (BAT) and now HEXO (Molson), I find the following CBD connection possibly worth knowing. Recently BAT appointed Kandy Anand to its board of directors. He is formerly "Chief Growth Officer and CEO Molson Coors International and Head of Strategy, M&A and Transformation". [https://www.bat.com/group/sites/UK\_\_9D9KCY.nsf/vwPagesWebLive/DOCBJKMX](https://www.bat.com/group/sites/UK__9D9KCY.nsf/vwPagesWebLive/DOCBJKMX) Anand joined BAT on 2/14/22 and Tilray/HEXO connected only 2 months later on 4/12/22. [https://www.globenewswire.com/news-release/2022/04/12/2420961/0/en/HEXO-Enters-Into-Definitive-Agreement-With-Tilray-Brands-to-Create-a-Strategic-Alliance-Between-Two-Canadian-Cannabis-Leaders.html](https://www.globenewswire.com/news-release/2022/04/12/2420961/0/en/HEXO-Enters-Into-Definitive-Agreement-With-Tilray-Brands-to-Create-a-Strategic-Alliance-Between-Two-Canadian-Cannabis-Leaders.html) Anand has also been associated with several CBD companies, including Canateq and Colorado-based Folium Biosciences. [https://www.prnewswire.com/news-releases/canateq-adds-two-former-molson-coors-executives-and-an-ai-pioneer-to-advisory-board-301099182.html](https://www.prnewswire.com/news-releases/canateq-adds-two-former-molson-coors-executives-and-an-ai-pioneer-to-advisory-board-301099182.html) [https://www.prnewswire.com/news-releases/kandy-anand-joins-folium-biosciences-board-of-directors-301127105.html](https://www.prnewswire.com/news-releases/kandy-anand-joins-folium-biosciences-board-of-directors-301127105.html) Folium Biosciences recently put up their brand new CBD factory up for sale as well. [https://hemptoday.net/colorado-cbd-maker-puts-factory-up-for-sale-before-it-was-ever-used/](https://hemptoday.net/colorado-cbd-maker-puts-factory-up-for-sale-before-it-was-ever-used/) Folium was almost acquired by Aurora's spin-off Australis Capital a while back, until the merger was called off due to Folium drama, including a murder-kidnap plot. [https://mjbizdaily.com/cannabis-investment-firm-australis-ends-purchase-of-colorado-cbd-after-lurid-charges-emerge/](https://mjbizdaily.com/cannabis-investment-firm-australis-ends-purchase-of-colorado-cbd-after-lurid-charges-emerge/)

noobstockinvestor

In the hexo md&a: The Company previously established HEXO USA Inc. (“HEXO USA”) – a wholly owned US based entity created with the intention to facilitate our expansion into the US hemp market. Management acquired an approximately 50,000 sq.ft. facility in Fort Collins, Colorado as the Company’s first international property and was intended to provide for the necessary infrastructure to expand our joint business venture with Molson Coors. Managements vision for HEXO USA was to focus on the research, development and formulation of creating unique cannabinoid cocktails (blends) tailored to specific applications to maximize cannabinoid functionality at high level margins. The strategy was anticipated to be applicable to CBD and minor cannabinoid-based products across both regulated markets and non-regulated markets as we await federal legalization. This includes the formulation and development of cannabinoid beverages, topicals/vanity personal care products to edibles, gummies and infused pre-rolls. On April 12, 2023, the Company transferred ownership of the facility to Tilray as contemplated by the Original Waiver and Amendment Agreement (see the section ‘Proposed Acquisition of HEXO Corp. by Tilray Brands’). Wonder if this has anything to do with new farm bill/CBD update that's coming. u/GeoLogic23

CannaVestments

Not sure how that's worth the purchase price at all. Beverage revenue was $649k in this quarter lol I think they'd be better off letting HEXO go under on their own (as they are trending) and going after that market share organically

SuzyCreamcheezies

The market reacting to HEXO earnings with a big 'meh' thus far. But we're only one hour into the trading day.

heliumbox

I think investors are just sick of these companies buying market share, I know I am. It hasn't worked yet and yet they keep buying. What good does HEXO even offer, some other ankle biter is just going to fill the gap. Is TLRY just going to buy all the competition? What is stopping someone from taking the cash and opening another company (if they actually wanted to). Not a single cannabis merger or acquisition has paid out, but lets buy another.

meparadis

HEXO down 99.50 in one year. Beat that!

BigDaddyDeliciousD

Damit Jim! Buy HEXO and hold through earnings. Don't be a fool!

BigDaddyDeliciousD

HEXO pot stonk? Look at the earnings chart and today's volume.

bleedingpowers

Are cannabis company stocks ever going to see a meaningful recovery or will they just go down and sideways for 5 years? ​ Roundhill Cannabis ETF $22.29 \-$34.11 (-60.48%)Past year ​ Tilray Brands $1.58 \-$2.29 (-59.17%)Past year ​ Canopy Growth $0.6753 \-$3.38 (-83.37%)Past year ​ Aurora Cannabis $0.529 \-$0.93 (-63.77%)Past year ​ HEXO $0.8255 \-$2.77 (-77.04%)Past year ​ OrganiGram $0.4056 \-$0.66 (-62.09%)Past year ​ SNDL $1.42 \-$2.00 (-58.50%)Past year

meparadis

Junk HEXO and TLRY as usual.

meparadis

Financially destroyed Thanks to HEXO & TLRY

meparadis

Imagine being in HEXO then...

skyplt29

I am copying my comment made this morning on the HEXO Private Placement news release. I am just not sure what to make of any of this anymore. Even Trulieve's decline has me perplexed. I thought the Florida news would have sent them higher despite the closures (which was a smart cost cutting move I thought). Nothing seems to be working. As well, the debt ceiling "crisis" appears to have been averted despite all the political posturing. Just another chapter in this sad Congress. My Sell order prices have been reduced accordingly thanks to Tilray's poorly handled debt offering (really, we didn't facilitate shorting...not). Nothing else to do other than wait (and wait, and wait) for some sort of rescheduling and/or SAFE news, but this will be awhile I think as these fucks will be spending the next couple of months congratulating themselves on resolving their manufactured debt crisis. Time for a bit of a mental health break from this train wreck. Have a good summer. Here is the HEXO post, likely my last for awhile (really nothing else to say until something tangible happens on the political front): "I truly do not know what to think anymore...I've lost more money in this sector than I care to admit. These days it feels many in this business (CEOs, founders, hedge funds, insiders) are making out like bandits while shareholders lose their shirts. Deals like this seem to benefit everyone except the shareholders. At this point I am hoping for some sort of Hail Mary (reschedule, SAFE) to at least bring my 70 percent losses to 20 of 30 percent losses. Sell orders are set lower every week. Ultimately I blame myself, I chose to invest more in this sector than I should have (primarily through ill advised DCA); but this latest 30 percent whack that Tilray (and Canopy) took last week is beyond the pale. After 28 months of misery, especially these six months since the botched SAFE move. MSOs are getting whacked as well...to the point where some are almost valued below their annual sales. The fucking politics of it all is excruciating coupled with ridiculous taxation and advertising restrictions as well as too many seedy players in management; disaster on every front." I wish to be clear that I am not capitulating, just focusing on other aspects of life until I see some evidence of life in this sector. All the best.

noobstockinvestor

Adam Arviv was basically printed free Tilray shares. Hexo issued shares to AA to have access to an equity backstop that HEXO couldn't touch because of covenants. Not sure if you guys saw, but Carl confirmed in AMA that Serruya wasn't the "secret investor" that bought 9.9% of aphria Now all these crooks are tied in with tilray. Makes me feel uneasy...

GeoLogic23

Could it be involving Adam Arviv and Kaos Capital? [https://mjbizdaily.com/cannabis-producer-hexo-to-refresh-board-after-deal-with-activist-shareholder/](https://mjbizdaily.com/cannabis-producer-hexo-to-refresh-board-after-deal-with-activist-shareholder/) [https://www.globenewswire.com/news-release/2022/02/22/2389512/0/en/HEXO-Announces-Refreshed-Board-of-Directors-Reaches-Agreement-with-Adam-Arviv.html](https://www.globenewswire.com/news-release/2022/02/22/2389512/0/en/HEXO-Announces-Refreshed-Board-of-Directors-Reaches-Agreement-with-Adam-Arviv.html) Arviv is currently working with Andy D and Adam Wilks (Serruya/Cobb partner) on the board of Tyson 2.0.

Gahan1772

I find that a strange argument to make. It was obvious they were going to buy HEXO at some point they could only sweeten the debt deal so much before HEXO would just default. So timing was not a surprise for most. Irwin likely knew US politicians would screw the pooch but I think he was and still is hopeful for Germany although more medical focus now. And why does the CEOs wealth matter? For one thing Irwin's net worth is [50 million](https://ca.wallmine.com/people/15498/irwin-d-simon) and HEXO was bought for 229 million. You say some ridiculous shit sometimes I know you enjoy bagging on TLRY but give it a rest man.

TilrayIR

Artistic-Chance2194 thank you for your questions. I disagree that our finances are getting in the way of our international deployment strategy. We have cash on reserve, although we are saving it for acquisitions which could happen internationally, and our international businesses are generating sufficient cash to cover their costs. We issued guidance for 2023 back in July of 2022. We anticipate doing the same thing this July for 2024 so I am not sure where the concern is with 2024 goals being unachievable. The negative gross profit last quarter was a function of a one-time write-off of inventory in contemplation of our transaction with HEXO and as a result of our reduced market cap in comparison to the net assets on our books. I refer you to my previous answer, Tilray has reported 16 consecutive quarters of positive Adjusted EBITDA and every quarter since Irwin became CEO. Our ability to remain listed on Nasdaq and at the same time interact with MedMen is very limited by the rules and regulations of Nasdaq. Since acquiring Tilray, we have found and reduced costs by over $120 million and announced an additional cost-cutting plan in Europe of approximately $8 million. Several of the expenses you identified in your question are not paid in cash. Again, I will put our track record of profitability and our financial health as demonstrated by the strength of our balance sheet against any public cannabis company.

TilrayIR

Thank you and great question Many\_Easy. I’m going to answer your question in multiple parts and in bullets to help clarify the refinance deal, why we did it and how it helped the company. 1. Heading into this fiscal year 2023, which began June 1, 2022 and ends May 31, 2023, we had a number of pending maturities on our debt which were coming due within the next 18-month period which include a SweetWater term loan, a Tilray convertible note due in 2023 (TLRY 23) and an Aphria convertible note due in 2024 (APHA 24). These loans and convertible notes were issued prior to the Aphria and Tilray business combination in 2021 to invest in the growth of our businesses. 2. If we did not address the maturity of these loans and payments, they would require us to use a majority of our cash on hand to repay them, combined with the outstanding convertible note we issued to buy the HEXO debt. 3. As of February 28th, 2023 we had $408 million of cash on our balance plus an M&A plan that will require cash. We always knew we were going to have to work on extending the maturity of the convertible notes, extending the maturity on the SweetWater debt and pay down some amount on the TLRY 23 / APHA 24. 4. The debt refinancing deal / transaction with Jefferies, Bank of America and TD Securities where we issued $150 million (plus a potential overallotment that would take the deal to $172.5 million) of new convertible securities. Those new convertible securities are priced at $2.66 a premium of 12.5% to the trading price of TLRY at the market close, bear interest at 5.20% and have a four term to maturity. We then used those proceeds to repurchase $12.5 million of the TLRY 23’s and $122.5 million of the APHA 24’s. 5. Effectively, this resulted in us extending the maturity date of $135 million of the convertible debentures almost four years at an interest rate that is lower than the interest rate we were already paying. This is part of the deal that I don’t think investors fully appreciate. In an era of rising interest rates, while the US government is arguing and creating market uncertainty over the debt ceiling, WE LOWERED OUR INTEREST RATE. As a result of this transaction, we lowered our near-term maturities by $135 million plus the approximately $70 million of the SweetWater term debt that we will work on extending between now and November. That freed up cash flow that can now be used to continue to grow our business by doing additional M&A, continuing to add strong brands to our existing portfolio with our existing cash resources.

skyplt29

Wow. That means 250M burned since last Q Report. I presume some of that for HEXO? No doubt these boys are acting in their own best interests...I am just hoping that eventually translates into my best interest😉

KAESLAX

I think this would've made more sense if they were in better financial standing. If all the smaller ankle-biter LPs had been declining but TLRY had remained relatively stable with cash on hand, maybe it would've worked. But they're dropping and short on cash just like all the rest - it doesn't really matter at this point that they're the biggest. In order for them to afford to acquire anyone else, prices have to drop even further, but that would mean theirs would as well. They're in a tough spot and I'm not convinced anyone in this market knows how to value anything. Imagine if they had acquired HEXO in Nov 2021 for $2-3 like they wanted? They got lucky HEXO turned them down.

istheremore

Hi Carl, Thank you for addressing our questions. I've been long believer, follower and shareholder since APH and have added shares until I had no money left to add. However since the TLRY merger, I have been silently questioning but ultimately trusting in the management. I hope things can turn around, so here are my questions. I hope that they are not as challenging for you as it seems my ability to recoup my losses are. ​ 1. Before legalization, Vic Neufeld predicted that the Canadian cannabis market would undergo oversupply and price compression destroying many companies and that low CoGs would determine the companies that survived and own the space. How has the management capitalized on being right when everyone else was wrong? 2. It seems to me, correct me if I am wrong, that you have made some big purchases: BrokenCoast, Medmen, TLRY, HEXO, Sweetwater, Breckenridge, GreenFlash; At a huge cost in 'goodwill' which has been lost and written off as "impairment charges". How much in total are these impairment charges so far and how much is more are you expecting? 3. Canada banned cannabis advertising and marketing, and restricted packaging to "plain" labels. You bought the #1 brand Broken Coast and had IMO great brand distinction with GoodSupply, Solei, RIFF, B!NGO. Despite knowing that the consumer only sees the name in plain text on a plain box with the THC percentage, you kept pushing money into branding and even buying HEXO for more brands that are basically a name and THC percent. How is this not a waste of money and even cannibalizing your existing brands? 4. What efforts are you making to open up regulations on advertising, and marketing to leverage the amount you've invested into brands? 5. The total addressable market for cannabis in Canada has reached the peak and Canada has forced this by banning it's sale where alcohol and tobacco are sold and regulating cannabis products so that they cannot successfully market themselves as direct alternatives despite it being the preferred and healthy alternative for many people. Now that your competition is dead and the whole industry is struggling to realize profit, is it time to level the playing field and open up the Canadian cannabis market to replace alcohol and tobacco? What efforts are you making with the Canadian government to change these anticompetitive regulations? 6. It seems to me like the path to profitability is to change the Canadian landscape and there is great economic and political benefit to Canada. TLRY seems well positioned but is this something the management recognizes as a priority and is it a challenge they are capable of succeeding at? Thanks again Carl.

buytilray

Carl, you all tried to buy HEXO at a whopping $3 per share but (thankfully) HEXO was too 'unwise' to accept your overly very very generous offer. Why is it that you and Irwin constantly try to overpay for other debt ridden under-performing companies(MedMen also) using hard-earned shareholder money? This is a bad ceo trait that Irwin brought over from HAIN when he wasted shareholder money buying too many stale underperforming brands there also. My second rhetorical question is, why is it that you nor Irwin have bought shares in the OPEN MARKET to support the stock and show confidence in your decisions?

sambarlien

And how long before their cost cutting strategy to grab market share has them go the same way as HEXO and Auxly? Can someone tell me how this is any different, and that they’ll survive? Seems like they’re just gambling that the macro environment changes at they get to maintain market share in the game of musical chairs that is Canadian cannabis

analyticswin

Is Tilray still committed to the Canadian Cannabis Industry? If so, what is the strategy (including recent HEXO transaction) to deliver profitability?

JohnnySquesh

Interesting. TLRY doing 4-5 times average volume and HEXO just above average.

cannasseurs

I don't understand how you squander $4B in cash and then your company's market cap is ~$400M ... I didn't think it was possible to have a bigger dud in Canadian LPs than ACB and HEXO... Oh my, how the tables have turned.

noobstockinvestor

I was thinking this too. Get some more bagholders before the dilution news. Not the first time I've seen this. HEXO's vince chiara came out and said fortune 200 partnership was coming soon right before they did an ATM or RS. Can't rmb which one it was

meparadis

We’ll know June 14th when the shareholders with vote in order to accept TLRY’s share buyout or not. I think its around 99% sure it will pass… HEXO value is nil

meparadis

The funniest thing is HEXO holders that swapped for TLRY thinking it was “safer”. I mean… TLRY is going to fuck them even more proven by this news alone

meparadis

Wait you forgot HEXO

King_Chron

and who would have guessed.... TLRY still not aligning themselves with current shareholders......constantly diluting. when will they get it? or its all to plan to destroy the last 5 years of shareholders for new investor wave when green light comes on? sorry guys not trying to hate, I was an investor in HEXO so I know about getting majorly F'D

meparadis

what the hell is happening afterhours? TLRY and HEXO getting DESTROYED

KAESLAX

I find it really interesting that SNDL is never discussed here, I'm curious why. I'm not saying they're any better or worse than the other LPs, but by market cap they're one of the major players now. I consistently see people talk about TLRY, CGC, CRON, OGI, VFF and even occasionally ACB and HEXO, but never SNDL.

meparadis

I think they'll dilute. My thoughts are even more realistic since they lately announced they bought out HEXO

Many_Easy

I’m fine with dilution if the acquisitions are on the cheap and will create future value and are not a drag on earnings. Some like Montauk, Sweetwater, Breckenridge, and HEXO deals - others don’t.

Many_Easy

Sorry that so many HEXO investors lost money. Are you projecting that Tilray Brands is going to decrease more in value? If so, why?

meparadis

HEXO destroyed lives lol From 465$ to 1.39$ and now is being bought out by TLRY

SuzyCreamcheezies

I totally forgot that HEXO bought Zenabis, as well. Weird deal. I’m not sure what Zenabis had to offer, aside from the early outdoor grow hype, which didn’t really pan out.

SuzyCreamcheezies

Included on their last ER? I assumed we wouldn't see any HEXO numbers on a Tilray ER until Q1 2024.

SuzyCreamcheezies

u/dmillibeats sums up my stance. Tilray acquires HEXO, the Molson JV (presumably), *and* Redecan less than two years after HEXO closed on them for $925M. All for a tidy sum of $229M.

Infinite-hold

It’s been a while since I looked at LPs, sheesh what happened? They can’t all fail, and eventually someone will retain all the market share. I mean, how many low cost producers are there at this point? CGC is done, HEXO is done… VFF and TLRY are competing against the entire black market, or are other LPs still fueling the market with low cost grams just to maintain top line? Canada needs a serious wipeout so few can thrive.

GeoLogic23

Some interesting connections to follow: InterCure and Mike Tyson to be featured on Fox Business later today. InterCure recently did a brand deal with Tyson. Now I love InterCure's potential, but I hate Tyson as a person. I think it's super interesting they are further publicizing this deal though. Tyson 2.0 may be the most "connected" brand I've ever seen emerge in this industry so far. Links include: Columbia Care, Verano, HEXO (Tilray), SOL Global (Andy D / Brady Cobb), Andy D personally, Serruya, Jason Wild (TerrAscend), InterCure, Logan Paul, and Jones Soda. I'm sure I missed some. These connections were mostly formed by Tyson's partner Chad Bronstein, through his marketing compliance company Fyllo. Jason Wild's JW Asset Management and SOL Global have been Fyllo's primary funders for years. https://www.globenewswire.com/news-release/2023/05/15/2668788/0/en/InterCure-to-Be-Featured-with-Mike-Tyson-in-an-Exclusive-Interview-on-Fox-Business.html

Substantial-Read-555

, Based on last quarter, they would have lost .02 cents if not for Hexo purchase. Due to booze diversification, CEO said will be positive by year end. Number 7 brewer in USA snd their liquor company won international gold metals for tequila and bourbon. With HEXO purchase, closing in summer, I believe they will have approx 15 percent of Cdn market. Quebec distributor that Village farms owns 70 percent of also just signed deal to distribute HEXO product. Correct any errors or add positives . Negatives.

Unlucky_Chemist123

First time buying stocks in February 21. Fomo’d in during the meme stock hype. I don’t think it gets much worse than this: HEXO: -98.9% PLUG: -82.1% TLRY: -95.2% AMY (Canadian): -81.3%

skyplt29

Interesting...on Friday the 5th of May I received some criticism on this forum when I suggested I had sold half my Tilray holdings for 3.68CDN. A few warned I would be missing that moon trip to the stars; but I was in no mood to be fooled again by a potential pump and dump based upon the Senate doing anything substantive. I was not very confident anything new would suddenly happen. I bought some of those shares back on Thursday for 3.40CDN (obviously too soon) and another bunch of shares yesterday for 3.25CDN. This is not the way I like to make money (same number of shares, but some extra cash back into the bank account). I also but some Cresco for 2.02CDN and Columbia Care for .54CDN. Something is afoot here. For me, Columbia Care had a rather odd week. A couple of times saw over 1.5M shares on the NEO, at least six or seven times the average. What next? More important to me, why in the hell do I still own weedstocks in spite of the worst 27 months I have experienced in 30 years of dabbling in investing? I do not believe the Senate will do much more than what they have been unable to do during the last 27 months. I give this process a 10 percent chance of success. I am neither in the Blue or Red camp on this one. The government is setup to be in stalemate on all fronts...inclusive of debt ceiling and borders. Rescheduling is another matter...I still put the odds at about 50/50 we could see it go to 3 before the end of this year. Perhaps a slight chance of a deschedule altogether, but I am not holding my breath on that dream. The next red herring is TSX uplisting. If one of these MSOs can convince the TSX to oblige I think they will all follow. It is essential these companies get off these shitty exchanges tailored for fly by night mining stocks. This is just exacerbating a terrible political situation. The next red herring is a whale jumping on board. Tilray managed to acquire HEXO in the midst of this shitstorm. Brilliant move by Simon IMHO. I would not doubt some alcohol, tobacco, or even pharmaceutical whale is licking their lips thinking they can scoop up the carnage of an entity like ACB for pennies on the dollar. That's why I am holding despite feeling as though we continue to get gut punches. I am uncertain of when this will turn, but I believe it will turn.

Israel_Azkanbe

Going all in on HEXO Tuesday. It's gonna hit the skies Tuesday guys.

Many_Easy

Tilray Brands with its NASDAQ listing, trading volume, market capitalization, and underlying real business is not what I’d consider a penny stock. HEXO and AYR are/were, not Tilray Brands.

cannasseurs

Same, but now that I see thee VFF Germany export news and their agreement to carry HEXO products in Quebec, the dots are starting to connect.

Many_Easy

Listening is okay, but following their picks NEVER. There is some good value listening to CEO interviews over time to understand their management style and strategy. Also, some good info on cannabis politics, scheduling, what millennials are thinking, and state news. I do verify everything I hear. I ignore all projections, but lately I found Elliot Lane to be a good source of daily news with a positive attitude and no hype and DH Taylor for his metrics and economic opinions. I sometimes watch the “HEXO kid” for laughs. Nobody seems to know anything enough to give me an “edge” so I am buy and hold and focused on fundamentals. When I say nobody, even Tim Seymour doesn’t seem to have any better street information than we have - otherwise his CNBS would be performing better.

noobstockinvestor

No arguments here. Although, would like to point out Irwin is the reason why we're still around 1.5b in mcap. Every other top LP has faltered - points to CGC/HEXO/ACB. I think he's worth the higher salary, but nothing too extreme

noobstockinvestor

It'll be brutal if cgc and tilray end up doing reverse splits. Would basically wipe out whatever equity is left from the Canadian LPs. ACB, OGI, VFF, HEXO (prior to tilray) all are already there and will likely need a RS

Noleslover2021

I have been buying/trading MRMD, MMNFF, CGC, CRON and HEXO on Schwab for a couple of years.

Many_Easy

I’m down a lot on Canopy. I think it’s entirely possible that much of their woes was influenced by Constellation directing them to do acquisitions and grow. As painful as the complete restructuring and newfound independence of CGC is, I think they still might have a chance and are better off than they were one year ago. They’re more focused operationally and strategically now. Similar for HEXO. Better off as part of Tilray Brands than being independent. Curious to see if MedMen receives additional financial support from Tilray Brands.

sozer-keyse

HEXO and ACB when weed stocks were all the rage. Thought they'd shoot straight back up when they dipped off their peak, and held the bag. Market value of what I had went from a couple grand to like $20. Lesson learned, never YOLO on hype. If you must make a "gamble" move, it should be a very tiny percentage of your portfolio at most.

zygodactyly

>Cannabis stocks Curaleaf Holdings , Trulieve Cannabis Corp, and Terrascend Corp all rose by double-digit percentages on Thursday. The bipartisan nature of the SAFE Banking Act’s reintroduction appeared to boost hopes of more relief to come in the industry. Wow shocker to see these doofuses recognize the existences of anyone other than CGC, ACB, HEXO...

DazedWriter

HEXO but I don’t have too much in it. Easy learned lesson to stay away from pumped up ideas and companies.

T3L3Frogg3r

Best - AMC Worst - ACB, HEXO Held onto those pot stocks for too long. I held onto them when they were worth triple and watched it dwindled down to -99%. Still holding though

skyplt29

Thank you for this well thought out and rational reply. My wife is equally supportive, her primary concern is my health. Watching my investments get pummeled day after day for over two years has had an impact on my attitude which in turn impacts other aspects of life. Mostly, I am (was) spending way too much time trying to figure out what was behind this continuous and seemingly unrelenting decline. I know, I know...one should not be emotional and one should not get too heavily weighted in one sector. In hindsight I foolishly did far too much DCAing over the last year or so as I wrongly thought that these stocks could not go lower. My bad. Here is my irony...I actually saw a lot of pretty decent news out last week; in fact, some of the most positive news in awhile. My sense is there is momentum in government. But all of this was overshadowed by false expectations around 4/20 I think as well as what appears to be a major misinterpretation of Schumer's remarks about SAFE. I am finding it difficult not only sifting through all of this, but perhaps most confounding is something I see as good news being completely disregarded (or worse) taken as bad news and thus a decline in share price. Another example is Tilray's planned buyout of HEXO. It is a logical step (in my view) as HEXO does have some things going for it that are worth saving (i.e. Redecan). I thought it was a pretty good signal that Tilray is acquiring. But it seems as though this is not seen as a positive by some. My biggest frustration is what I see as a confounding mismatch between news events and the impact on share prices. I really saw no reason for last week's declines. Treading water perhaps (no gain/loss)...but this continuous slide since December 2022 is confusing the hell out of me. Is this pessimism irrational? The volume suggests to me there really is no trading or short plays...but damned if I can figure out why these stocks have not only bottomed by now, but started to recover somewhat after over two years of decimation. We are closer to legalization today than we were two years ago IMHO.

GeoLogic23

[https://www.prnewswire.com/news-releases/tyson-2-0-and-ric-flair-drip-now-under-carma-holdings-to-bring-to-market-celebrity-inspired-products-301674351.html](https://www.prnewswire.com/news-releases/tyson-2-0-and-ric-flair-drip-now-under-carma-holdings-to-bring-to-market-celebrity-inspired-products-301674351.html) Ric Flair is in on it too. Another class act. Bad people are all over this industry unfortunately. "Through a vast network of leading industry partners including Columbia Care Inc., Verano Holdings and HEXO Corp, TYSON 2.0 and Ric Flair Drip products are now available at over 1,000 retailers across 40 states and select provinces in Canada."

262Chief

To be clear, they produce med weed products from raw cannabis and oil supplied by HEXO. https://london.ctvnews.ca/entourage-health-shuttering-strathroy-cultivation-facility-1.6185326#:\~:text=Entourage%20Health%2C%20formerly%20known%20as,slated%20for%20March%2031%2C%202023.

GeoLogic23

I think the takeover of Canada is still in progress, not a failure. I think CGC as a company is probably a failure. The other two largest LPs are Tilray (no partner) and Cronos (Altria). Cronos especially just chilling there with tons of cash, while a large amount of the bankruptcies in Canada are smaller cannabis companies. I think big business is just more patient and methodical than we give them credit for sometimes. I also think after HEXO closes, a TLRY/CRON merger is an underrated possibility. It would make a lot of sense to me.

262Chief

When are they planning to release there end year financials? 6 months ago....They have 120 milly in assets and 133 milly in liabilities. There revenue is 42 milly 9 months into their FY, as compared to 42 milly, same period last year. They have lost 44 milly so far this year. As compared to loosing 41 milly last year, same period. From the company: As of September 30, 2022, the Company had a working capital of $27,122,688 (December 31, 2021 – negative working capital of $54,967,354) and an accumulated deficit of $231,444,854 (December 31, 2021 - $196,221,574). For the nine months ended, the Company used cash in operating activities of $22,651,351 (nine months ended September 30, 2021 -$21,261,745), resulting primarily from the net loss of $35,223,280 (nine months ended September 30, 2021 - $34,425,959) offset by items not affecting cash such as depreciation, amortization, and stock-based compensation. If you like the star seeds products, you will probably love the HEXO products, as HEXO is there supplier. https://www.nasdaq.com/press-release/hexo-and-entourage-health-sign-long-term-supply-agreement-2022-11-15

cannasseurs

I'd say hold off on selling Tilray, until you see earnings 2 quarters into HEXO integration to see how that pans out. Earnings and savings will definitely be good 1-2 quarters post integration of HEXO. Tilray has already been working with HEXO for almost a year, so the integration will be quick. If you sell now, before you see the combined company results, you might be kicking yourself later.

KAESLAX

I agree it doesn't change fundamentals and I'm not trying to suggest OGI's financials are similar to HEXO's, but fundamentals and financials don't seem to matter much in this space these days. Stock prices on all of these companies (LPs and MSOs) have been grinding down largely due to sentiment, and reverse-splitting to prevent delisting is perceived as negative.

GeoLogic23

A reverse split doesn't change anything fundamental about the company. HEXO was in a dire financial position when they had to reverse split. I do not think it makes sense to predict a 50% drop on a totally different company with far superior financials.

BIGMEECH_300

Actually, no they didn’t lol Tilray had prime real estate and manufacturing site that they was icing operations from. So, is the same with HEXO a bunch of their processing plants are going to be sold off to support other industries outside of cannabis.

SuzyCreamcheezies

- Noob summed up the HEXO bit below fairly well. As mentioned, I think they got some decent assets and brands for a song. - Not sure where you are getting this 5 year number from. There’s a good chance that the pilot project will include companies that already have a footprint in Germany, Tilray included. Sure, it’s not full on legalization, but the pilot project could still pad out the bottom line quite nicely… especially if these zones include metropolitan areas. No need to wait five years. - Earnings…. Ya, not so great. But again, they seem confident about free cash flow between now and August. Surely they’d know if that wasn’t likely, so why reiterate that goal?

Gahan1772

> HEXO is not a good deal > > > > Sorry for assuming this didn't mean bad deal Ok. Goodnight.

noobstockinvestor

>HEXO is not a good deal Sorry for assuming this didn't mean bad deal

Gahan1772

Yeah you pretty much laid it out lol why are you asking? - Germany didn't pan out. No money to be made short term just more hopium for the future. - HEXO is not a good deal and I would wager the only reason they did it now was because HEXO was going to fail to make payment on the debt. - Also the earnings had nothing good and a huge 1 billion write off. Also before you freak out re-read my original comment. I didn't say material change.

SuzyCreamcheezies

What recent events are materially detrimental to the stock? Their earnings were ‘meh’, but guidance was optimistic. I suppose you could take the HEXO news as negative, but I think the made out like bandits. And Germany news wasn’t as hyped as many people thought it would be, but it’s not like the stock price was reflecting any Germany hype anyways. So what recent events in particular are you referring to?

JohnnySquesh

The only thing that would be more bleak than the present state of affairs would be sitting at these lows for month without any volatility. Thankfully that appears unlikely since we have do many shorts on the other side of the trade. We saw great volatility out of HEXO for two hours before the news was even digested. That was roughly 40% ago. Quick and the Dead

stevetronix

Makes sense. If someone has 1000 shares of HEXO at like $250 because of the reverse splits, what will the average cost be of the new 435 TLRY shares? Will it be $574.71? (1000 * 250 / 435)

SuzyCreamcheezies

You may be thinking about Tilray and AB InBev? They had a joint drinks company, but didn't do all that much with it. They cut ties shortly after the Tilray/Aphria merger. HEXO is partnered with Molson under the name TRUSS. They're still around and the one I am curious about.