Post by
lb1temporary on May 29, 2020 8:57am
They can't use the proceed for M&A or a major purchase.
All the documents are available on SEDAR.
USE OF PROCEEDS: The net proceeds of this offering and the concurrent convertible notes offering will be used to supplement the Company's working capital and other general corporate purposes and will serve to increase the Company's cash position, thereby allowing for additional flexibility both from an operational standpoint and in the implementation of its planned mitigation and recovery measures in response to the COVD-19 pandemic.
There's no place for Mergers & Acquisition, expansion or ''opportunities'' other than for a small scale (general corporate purpose). We could not even find a few words for that.
If they wanted keep the door open, they would have mentioned it.
Also, the Investors presentation document is only about preservation of cash and preservation of capital including limiting the Capex. The Transat acquisition is mentioned even if it is in jeopardy (AC officially binded).
Using the proceeds in the weeks or months after for a significative project will be a clear misrepresentation. Regulatory autorities, brookers, institutionnal investors, market will not allowed this.
Like it or not, there’s no magic hidden project; the message from Air Canada is ‘’it won’t be easy, but we are strong enough’’.
Comment by
doomaaaa on May 29, 2020 10:24am
They can then use their cash and cash-like balances to execute on strategic opportunities.
Comment by
fraudhunter on May 29, 2020 10:41am
And they will. The posts re M&As are diversions. Why the heck would AC be looking for M&As when they can make strategic organic moves with much better returns on investments. The story on aircraft deals set up for the future will be an important part of the story. Think of stolen bases and pinch hits. How is the Airbus A321LR looking like? Watch.