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Genius.
the OS will get crushed, downsized as the share price explodes.
BINGO.
Glad someone gets it.
GLTA & JMO
SIMPLE.
Buying a pitiful $3K in shares provides another dangling carrot. A talking point for the SGSI community marketing team to victimize unsuspecting shareholders.
The logic doesnt work.
If he really believed in the forward prospects he would have bought $100K worth.
And he wouldnt have divested of 150M shares.
I mean really.
Watch and learn. RINSE. REPEAT underway.
GLTA & JMO
OS will get ventilated.
This isnt rocket surgery.
RS in pennyland wipes out existing shareholders.
Better luck next time?
GLTA & JMO
Pretty obvious why insiders got rid of their commons now.
Preferreds dont get included in an RS.
Talk about working shareholders over.
GLTA & JMO
Unfortunately the market isn't falling for any of this BS.
We all know what will happen next week.
And the week after that as the PPS gets dwindled back down.
So much for call of $1
Down 26% today on HEAVY VOLUME.
And btw.. NASDAQ wont touch this POS, and for good reason.
Guaranteed.
The carrot dangling is over. And those who have become pegs in a share selling scheme will have to turn out the lights.
GLTA & JMO
You almost got your 1$ share price.
LOL
After the RS it may be at .80 for a few minutes before the frozen ghosts thaw out and convertible debt pummels the BID.
Im sure they will put out another fluffy PR to slow the rollback but its gonna be another race to the bottom.
Trip zeros cometh.. equivalent post-RS.
GLTA & JMO
Along with some profit taking ahead of a huge week.
Good for support and trajectory.
GLTA & JMO
For some I suppose.
For others its quite painful.
And an expensive lesson in pinksheet stocks.
GLTA & JMO
Dont need to..
Management and an RS will take it to trip zeros equivalent on its own.
Who in their right mind would hold through the weekend to see their position decimated on Monday.
I mean really..
GLTA & JMO
.000PS
Right now my average cost stands around less than .0049.
BID is so thin.
Any volume will crater it again.
And Monday will be see another precipitous drop as convertible notes start to pummel the BID.
Seen it a hundred times in Pinky land. The pattern continues..
Better out with a loss than a tombstone.
GLTA & JMO
RS is happening MONDAY.
As promised.. 200 to 1.
Hence the dumping today. Everyone knows how this ends up.
In the toilet with a pinksheet paper roll.
LOL
GLTA & JMO
Famous last words.
A new 52 week low is at hand.
Get ready!
GLTA & JMO
Fill your boots!
LOL
Someone needs to before the REAL DILUTION begins.
GLTA & JMO
Keep dreaming. This will be back to pennies in a heartbeat.
With new toxic notes.
TRIP ZEROS. One-way or another.
GLTA & JMO
It really Is a cesspool of shareholder victimization.
But any basic DD here would have raised countless RED flags.
GLTA & JMO
WRONG.
The AS is not changing.
READ THE FILINGS.
I mean really.
GLTA & JMO
And it will be a race to dilute after the RS.
Most responsible companies would reduce the AS by the same ratio.
But NOPE.
Only shareholders get their shares consolidated into 200:1
LOL
Even Ponder/Hayter made sure to dump their commons before the RS was announced.
I cant even make this stuff up.
GLTA & JMO
200:1
Thats the biggest I've seen in a long time.
GLTA & JMO
LMAO
It means shareholders are done.
Last chance to get out with a shred if value.
OOPS!
Too late.
GLTA & JMO
Boom.
RS now on the daily list.
FULL Reverse Split - 200:1
http://otce.finra.org/DailyList
GLTA & JMO
Balance of Trades today.
:)
Shareholders getting the boots put to 'em.
https://ih.advfn.com/stock-market/USOTC/spectrum-global-solutions-inc-SGSI/trades
GLTA & JMO
I'll say!
Ended at HOD and 52 week high.
More to come. :)
GLTA & JMO
Could be $8 by EOD tomorrow.
GLTA & JMO
HEXO House of cards is coming up all ACES!
LMAO
Feel sorry for those who are still investing in penny scams.
GLTA & JMO
Riposte Capital Calls on Leading Cannabis Licensed Producer, HEXO Corp., to Initiate a Review of Strategic Alternatives
Despite Enviable Assets, Contracts and Strong Balance Sheet, HEXO Trades at Deep Discount
Riposte Looks Forward to a Dialogue Leading to Constructive Action
NEW YORK, Sept. 6, 2018 /CNW/ -- Riposte Capital, LLC, the second largest public shareholder of HEXO Corp. ("HEXO"), a leading Canadian cannabis Licensed Producer (formerly called Hydropothecary Corp.), has sent the following letter from Khaled Beydoun, Riposte Capital's Managing Partner and Portfolio Manager, and Ryan Price, a Partner and the firm's Director of Research, to HEXO's Chief Executive Officer and Board of Directors:
VIA ELECTRONIC AND OVERNIGHT MAIL
September 5, 2018
Dear Sebastien and Members of the HEXO Corp. Board of Directors,
As the second largest shareholder in HEXO Corp., we are writing to reiterate to you the concern we have expressed previously about the severely depressed valuation of HEXO in spite of significant positive milestones and developments that management and the Board have accomplished this year. Though we have appreciated and look forward to continuing our dialogue, its pace of late has lagged the rapidly changing industry dynamics, and a catalyst has become necessary.
We – and, we are confident, other like-minded shareholders - believe your success in establishing enviable assets and contracts for HEXO has not translated to success in earning an appropriate equity price and multiple from the investment community for the company's considerable existing and potential value. Moreover, the stock suffers from poor research coverage and investor awareness, a late listing to the TSX, no US listing, and an investor relations effort that needs significant improvement.
At a time of rapid development in the industry, with participants racing for scale, capital is a strategic asset. In our view, promptly addressing and remedying the company's severe and unwarranted equity discount is essential to its competitive position. Taking decisive action to dramatically lower the company's cost of capital, and thereby unleash its growth potential, should be the Board and management's highest priority, and should be addressed at the next scheduled Board meeting.
We believe HEXO has the highest revenue visibility in the sector, due to your SAQ contract – the industry's largest and longest government contract, worth more than $1bn in sales over 5 years and potentially $100mm of annual EBITDA contribution by year 3. Furthermore, you are one of two companies in the sector to have a formal agreement with a large alcohol company, in the form of your recently announced joint venture with Molson Coors Brewing Company. The other company with an alcohol partnership is Canopy Growth Corporation, which now has a market capitalization of over $23bn. This compares to HEXO's market capitalization of just $1bn. We believe HEXO's Molson Coors JV alone could be worth multiples of the current market capitalization of HEXO today.
We believe a conservatively calculated current intrinsic value for HEXO is $18 per share, based on a sector average multiple of 30x 2020 EV/EBITDA (current average trading multiple of the top 10 Canadian Licensed Producers by market capitalization) and the Molson Coors JV, to which we ascribe a modest $500mm vs. the implied $12bn in market capitalization being ascribed to Canopy from the Constellation deal (under the same methodology).
Yet HEXO trades at an EV/EBITDA multiple of just 8.1x 2020 consensus EBITDA – a mere fraction when compared to Tilray at 93.8x, Canopy 89.2x, Aurora at 27.2x, Cronos at 23.7x and Aphria at 19.5x.
Meanwhile HEXO has:
The largest government guaranteed contract (in size) with the longest duration (5 years) in the sector;
One of the strongest balance sheets (22.4% of market cap in cash); and
The industry's lowest cost production thanks to energy prices in Quebec (about 1/4th the cost compared to the rest of country), and labor expense (a minimum wage that is 33% below the Canadian national average).
Without a doubt, HEXO has the potential to be one of the market leaders in the cannabis sector based on its:
Strength of management;
Product suite;
Research & Development and Innovation Pipeline;
One of a kind partnership with Molson Coors; and
Its leading position in Quebec.
We see it as a testament to your team's operational acumen, as a producer, that Molson Coors indicated that they had conducted thorough due diligence on the sector, met with other much larger competitors, and ultimately selected HEXO based on shared culture and corporate values, a science-based approach with continuity of supplies, innovation pipeline, and track record. That all being said, HEXO still suffers from a low multiple and share price, which is critically important, as it significantly hampers the company in the race for global growth and expansion.
As significant shareholders we encourage management and the Board to act decisively at the next scheduled Board meeting to initiate a review of strategic alternatives to maximize shareholder value, which include (but are not limited to):
1) Engaging with any interested buyers of the company at a significant premium to the current share price. In light of the extreme valuation differentials that are now evident between HEXO and peers, HEXO would still be accretive on 2020 EBITDA if multiples of the current share price were offered.
2) Taking the company private, now that the financing markets are open to the sector and banks are providing leverage, and doing so in a manner that would permit us to maintain our existing ownership percentage in the company.
3) A meaningful direct investment from Molson Coors to fund growth and further strengthen the company's relationship with a major alcohol player. In lieu of your pending proposal to issue warrants with a $6 strike, consider a direct placement for up to 20% of the equity at current levels in order to underpin the balance sheet and solidify distribution partnership.
4) A no-premium, accretive merger with a comparably-sized LP that can add further geographic diversification, scale, international opportunities, and medical expertise.
Given the company's depressed valuation, the competitive implications that flow directly from remedying your undervalued share price and inflated cost of capital, and the ongoing commitment from the Board and management to maximize shareholder value, the company's prior public position of completely taking a potential sale off the table should be reconsidered.
We look forward to your response and prompt action.
Sincerely,
/s/ Khaled and Ryan
Riposte Capital
New 52 week high today.
We have the 2nd largest activist shareholder group pushing for a strategic review as the company is trading at deep discounts.
GLTA & JMO
Surprise surprise.
RIP TECO.
GLTA & JMO
A new 52 week high today.
Damn!
LOL
Keep it coming.
GLTA & JMO
One too many beers!
LMFAO
SGSI about to fall through the floor.
GLTA & JMO
Genius.
LOL
Would be better covering at .002
GLTA & JMO
Did you hear MVTG and Larry are in the wind and have no longer any connection to SGSI?
LOL
GLTA & JMO
Clinging to .006x
Desperate shareholders offering charitable donations to keep the lipstick on this pig.
Dilution and toxic debt will crush the PPS ahead of the RS.
Losing $3M a quarter for a business that is just reselling labor is not a great investment scenario.
I mean really.
Trip zeros cometh..
GLTA & JMO
New 52 week high today.
Shes getting ready to break out again.
GLTA & JMO
Nice action here today.
Churning higher on good volume and about to break through the 52 week high.
Name change is about to go through and the markets are going to open wide for these players.
GLTA & JMO
Balance of trades today: https://ih.advfn.com/stock-market/USOTC/spectrum-global-solutions-inc-SGSI/trades
More last second paint jobs.
Desperate times call for desperate measures.
Trip zeros cometh..
GLTA & JMO
The market has been on fire for the last 3 years plus and SGSI just continues to wallow in misery.
Losing 99% of its value from .75
Yikes.
Better places to put your money than this pinksheet quagmire.
I mean really.
The BS this company touts to keep shareholders on board is mind boggling.
GLTA & JMO
Wishful thinking.
And even if true makes no sense.
I mean really.
RS cometh.
GLTA & JMO
.000PS.
Bid just collapsed into the .005X range.
Again.
Dumping continues ahead of the RS.
GLTA & JMO