Vodka Martini >>> Shaken not Stirred ( all-in )

Vodka Martini >>> all-in

>>> James lets go bullish for Christmas:

1st Entry: let's load a truck with Long Call >>> HEXO $1.5 Call (Jan 21) @$0.17 x 5555 >>> Target for Christmas? 2.1-2.7

2nd Entry: all-in, a bottle of XOXO Long Call >>> HEXO $1.5 Call (Feb 21) @$0.21 x 2127 >>> 1st Target for HEXO: 2.1-2.7

Note

Salut,
on the 2nd thought, I would wait with the purchase, until it bottoms

Note

Wait for reversal, first and be careful with january calls

Note

>>>

Salut,
from 2021-Q4 Quarterly Report (page 35-39) >>> there are accounting errors, picked-up by HEXO Auditor >>> so HEXO, most-likely, will have to restate 2021-Q4 Quarterly report

>>> 2022-Q1 most-likely will be very positive, but

>>> in my view: HEXO valuation (today) @295 Million is cheap, but the investment banks asked at-least for $395 Million USD collateral (for the Merger with REDECAN), and most likely shorted (in August) the (collateral in HEXO shares) @$3.98

>>> HEXO Board, on the spot, sold the $395 mils Note (to yet another Investment bank) for $3.98 and,
(1) limited Note conversion to @$5 dollar per share
(2) plus prohibit to 3 investment banks to hold more than 10% of the value of the company, so HEXO (as a Company) miraculously won, but HEXO CFO messed 2021-Q4 Quarterly report for (May-July 31,2021)
(3) in November 2021, due to strong decline in shares, HEXO Board and the investment banks, again renegotiated Note conversion to @$1.5 per share
(4) so the Note most-likely dropped in value from $450 Million to $200 Mills (good for HEXO), but HEXO shares continue to slide and hit $1.00,
meaning if investment banks probably converted the Note @1.5 but diluted current shareholders to around $1.3 per share
(5) but, if HEXO Board limited conversion to 10% >>> then HEXO (as a Company)(won again) >>> this time, about $295 Million USD
(6) but the new CEO/CFO must report this to existing Shareholders in the next 2022-Q1 Quarterly Report

(7) so hopefully HEXO shares will rebound above $1.7-$2.00 dollars >>> around Dec 21 (or after Christmas)

>>> the result: we may see 1st Pullback around mid-december (Dec 7-12) >>> however, both December and January $1 and $1.5 Calls are super risky for simple Call strategy

>>> Good Luck >>> to catch the Pullback

Note

>>>

Salut,
here is 2021-Q4 Quarterly Report for HEXO (read page 40) >>> staticproduction.s3.amazonaws.com/financial-statements/2021/HEXO+CORP+FISCAL+2021+MDA+FINAL.pdf

Here is a brief overview of Convertible Preferred Shares, invented on Wall Street (by Goldman Sachs) back in the 1980s for the purpose of the Merger.

there are 2 main features: in the modern Accounting, for Convertible Preferreds
a. Convertible Preferreds are issued in Series for each Merger
b. Convertible Preferreds are an Asset and NOT a Debt, as such each Series must be properly recorded as an Asset on the Company Books

>>> in Q4-2021 HEXO completed 2 Mergers and issued 2 Series of Convertible Preferreds
a. Convertible Preferred Shares (Series A), were issued to ZENABIS (stock holders)
b. Convertible Preferred Shares (Series B), were issued to 48 NORTH (stock holders)

>>> in Q1-2022 HEXO completed the Merger with REDECAN and issued,
c. Convertible Preferred Shares (Series C), were issued to REDECAN (stock holders)

Technical Analysis of HEXO
1. following each Merger HEXO Corp has Zero DEBT on its Books
2. following each Merger HEXO Corp now has 3 Assets on its Books in the form of Convertible Preferred Shares (Series A, Series B and series C),
3. each Asset is valued at: the agreed value of the Merger
4. each month (on the 1st day of the month)(for the next 24 month) HEXO Corp will reward its shareholders and will follow the following procedure:

a. (on the 1st day of the month) (each and every month) CFO of HEXO will enter the Company Vault, together with Miss Print (the "Treasurer" of HEXO)
b.1 Mister CFO will touch the Box with Preferred Shares (Series A) and will take 1000 Shares of Convertible Preferreds (Series A) for Stock Holders of ZENABIS

b.2 Miss Secretary will update the Company Ledger and will issue 1000 Shares of Convertible Preferreds (Series A) from the Company Ledger and will ask Miss Print to print the name of Stock Holder and will Seal the Shares with Company Seal

b.3 (on the 1st day of the month) (each and every month)(at the closing of Trading on NASDAQ) (a) Mister CFO will convert 1000 Shares of Convertible Preferreds (Series A) into 1000 Shares of Class A Common Shares of HEXO, and (b) Miss Secretary and Mister CFO (of HEXO) will jointly (electronically) deposit converted shares (Class A Common Shares of HEXO) to a dedicated investment account of HEXO Stockholder, whose name is in-printed and sealed on Convertible Preferred Shares.

b.4 Miss Print (the "Treasurer" of HEXO) and Mister CFO will double check the books, and, if everything is all-right, Miss Secretary will sign the Stock Certificates

b.5 together with the Seal, all Players will exit the Vault and lock it with the Seal

c. (in 24 month) the Parties will complete conversion of 3 Series of Convertible Preferreds and join the Board of HEXO for discussion.

Corporate Procedure:
1. upon entering the Board, each party will get a Chair, with the name in-printed on it,
a. there will be 7 Chairs for 7 members of the Board ...
b. ... the Result: there is NO Collateral (in HEXO shares) for the Proxies, Investment Bankers or any other 3rd parties
c. instead of $395 Million in Convertible Notes (recorded as $395 million debt on the books) the $395 Million Asset (the "Convertible Preferred Shares (Series B)" is gradually converted to Class A Common Shares (of HEXO Corp) in 24 monthly instalments

c. every HEXO Shareholder benefits from $790 Million difference in Valuation (plus/minus adjustments)

d. the HEXO Auditor need to review the Company Accounting Procedure and correct accounting errors, picked-up by HEXO Auditor >>> so HEXO, most-likely, will have to restate (asap) 2021-Q4 Quarterly report

>>> this is Good News, since Convertible Preferred Shares dramatically change Valuation of the publicly-traded Company, like HEXO (especially after 3 Mergers)

>>> we believe 2022-Q1 Quarterly Report and 2022-Q2 Quarterly Report both will be very positive, and (in 2022) HEXO will have much higher share price than $1.00

SwingTrader-07

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