Algoma Central Corp T.ALC

NCIB Update in the quarterly report

[rustyblades]

In the latest quartely report "Under the current NCIB, 442,395 Shares were purchased and cancelled for a weighted average purchase price of $15.25 for the nine months ending September 30, 2023."

So the public float gets even smaller.  I guess it would be difficult to buy the approved maximum of 1,926,915 shares without affecting the price even if the purchases were stretched out over 12 months. The approved maximum is approximately 5% of the total shares issued so 442k is a little over 1% ot the total shares issued.

I would have preferred a dividend increase over the buybacks.

[Thor16]

Does anyone know what the plan is with the convertible debentures?  Large dilution event coming or buyback planned?

[rustyblades]

News release with the terms of the Original Offering  The $75M of debentures mature on June 30, 2024 and the conversion price is $21.15. The conversion price is considerable higher than the current share price of sub $15

[rustyblades]

Link in previous post didn't come through ALGOMA CENTRAL CORPORATION Announces $75 million Public Offering of 5.25% Convertible Unsecured Subordinated Debentures – Algoma Central Corporation (algonet.com)

[rustyblades]

Let's try again https://www.algonet.com/news-item/algoma-central-corporation-announces-75-million-public-offering-of-5-25-convertible-unsecured-subordinated-debentures/

[Thor16]

The dividends have reduced the conversion price to ~14.50.  Currently the stock is trading above conversion price.

[rustyblades]

Thanks for that. I didn't know about the conversion price being reduced by the dividends payed. I looked up the SEDAR filing and the relevant section from page 18 is pasted below. "Subject to the provisions of the Indenture, the Indenture provides for the adjustment of the Conversion Price in certain events including without limitation: (i) the subdivision or consolidation of the

[dangood]

In the latest Annual Information Form (February 2024 release) I believe the conversion price was mentioned to be $14.28 as of November, 2023. So it's likely a bit lower now with a few more dividends above the 10 cent threshold.

[Thor16]

Any thoughts on possible outcomes?