High Arctic Energy Services Inc T.HWO

Got what we wanted: 2 pro-rated listed companies & full ROC

[Resilience2]

Also got rid of a let's say less value adding elemnt in the Board and added more relevant managment and Directors. 

Don't know what more we could have wanted. It's pretty perfect.

Amazed the SP is not higher. Both companies are now worth $ 0,30 cents when split evenly. Hard to believe this remains the case when cash flow/contracts/deals start to come in.

I also believe the reduction of shares will make issuing a divvy (esp for CAD company) much easier.

Also explains why they didn't buy back shares: why bother when this effectively is a rollback anyway. 

I like it a lot.

Did anyone receive the Management Circular that was promised in the NR to be mailed around 13th May yet? If so let us know, I haven't seen anything yet. 

R.

[AVALONSHARK]

Here it is https://ceo.ca/content/sedar/HWO-2024-05-13-management-information-circular-english-2e96.pdf

[AVALONSHARK]

$1.16 in cash, will be around $1.28 by end of June. The company made 0.07 cents in profit, what will it take for the market to give some value to both the businesses ?

[impega]

Solid quarter which bodes well for the splitcos. Plenty of cash left for the respective spin off companies and we know the future in PNG is bright!.

[colourama]

Amazing that the value is still being assessed at $0.30 cents net of cash. The Team Snubbing dividend alone seems to be about $1.5 - $2million per year, enough I think by itself to sustain a $0.01/month dividend (assuming 12mill shares outstanding, 0.12*12 = $1.44 million/year). That is a 0.12/(4*0.30) = 10% yield at the current price if my math isn't wonky. (Please feel free to correct

[Stonksonlyup90]

I especially liked the comments around the Canadian Rental income stream, tax free with those huge tax pools to utilize. That component of the business could really generate a lot of growth and spew FCF out to shareholders!!

[impega]

So it appears that the re-org has been significantly de-risked in the last week or so. Both spincos will be adeequately capitalized with good prospects going forward and a reasonable opportunity for a dividend in the Canadian operations as colourama points out. There is some uncertainty with PNG but I think the risk is in the timing of contract wins not in the question of wether they will win

[colourama]

Avalon, how did you get the estimated $1.28 per share of cash number by end of June? Certainly cash should continue to accummulate, but how did you arrive at that number?

[AVALONSHARK]

Need a bit of correction, I was assuming full usage of the rig throughout the quarter. I expect them to generate about 4 mil in cash this Q which takes their cash load to 61 mil which is roughly $1.25 in cash by end of the Q. Take 38 of that out with ROC, you have roughly $23 mil in two businesses. Canadian business is cash flow positive and 8-10 mil will be enough for another accretive