Replies to post #4762 on HEXO Corp (HEXO)

[audioguy]

Is it a reverse split? They said they are consolidating shares and it's an 8:1 split, not 1:8.
By reducing the OS won't that be a good thing?
Am I missing something?

[Johnk59]

Reverse splits aren’t always a bad thing. Reducing the O/S and float can be a good thing depending on what the company does after the R/S. If they just turn around and have to create more shares to generate cash to stay afloat, then yes we get screwed,(probably go8ng to happen). But if not and they can keep from being delisted it could help in the long run by providing access to more investors and other options for loans/financing, but they have to give these people reason to be interested.

I’ve held other companies that have thrived after a reverse split, but this isn’t the case for most. GMGI is a good example of what has so far been a success story. They did a 1:150 reverse split in July with the goal of uplisting. My share count went from 125K to 833, but it has almost doubled since the split.