ECN Capital Corp T.ECN.DB.B

Primary Symbol: T.ECN Alternate Symbol(s): T.ECN.P.C | ECNCF | ECNNF | T.ECN.DB | T.ECN.DB.A

Financial Services

ECN Capital Corp. is a Canada-based provider of business services to North American banks, credit unions, life insurance companies, pension funds and institutional investors (collectively, its Partners). The Company originates, manages and advises on credit assets on behalf of its Partners, specifically consumer (manufactured housing and recreational vehicle and marine) loans and commercial (inventory finance or floorplan) loans. The Company operates through two segments: Manufactured Housing Finance, and Recreational Vehicles and Marine Finance. It operates through three businesses: Triad Financial Services, which manufactures home loans; Source One Financial, which is engaged in nationwide marine and RV lending; and Intercoastal Finance Group, which is engaged in national marine and RV lending. It provides prime credit portfolio solutions: Secured consumer loan portfolios, which manufactures home loans, and Secured consumer loan portfolios, which provides marine and RV loans.

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Post by retiredcfon Mar 08, 2023 9:20am

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Post# 35325488

RBC

Certainly an interesting development. GLTA

March 7, 2023

ECN Capital Corp
Announces strategic alternatives review

TSX: ECN | CAD 3.10 | Sector Perform | Price Target CAD 4.00

Sentiment: Neutral

Summary: ECN announced it initiated a review of strategic alternatives for its current businesses in response to interest it has received. Some options ECN is considering include strategic funding and capital relationships, among others. Further, ECN has retained external financial advisors and does not plan on providing further status updates on the process unless there are material developments.

In connection with the strategic alternatives review, ECN announced it will postpone its Investor Day, which was scheduled for Wednesday, March 8, 2023 (tomorrow), and that the company will release its Q4/22 results on Wednesday, March 22, 2023 after market close.

Our take: Today's announcement was unexpected, but not entirely surprising given the significant decline in the share price since last summer. We think the shares are likely to react positively to today's announcement, but given the uncertainty regarding the outcome of the review, we maintain our Sector Perform rating.