Quipt Home Medical Corp T.QIPT

RE:RE:PTQ can double its Acquisition Power! How? I'll show you...

[brentski99]

lscfa wrote:

Already discussed....

There are so, so many opportunities for this company - it is staggering. We both see it as I am sure many others here do. The Jonny come latelies that keep popping up now and then are not in for the long run like a lot of us here are. I am a bit impatient too as I would like to see $2 already but I expect a lot more than that over the longer term. Especially with everything falling into place like it has been. PTQ is one of the safest and most promising stock market investments out there right now, imho.
 

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lscfa (1238)

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June 02, 2020 - 11:51 PM

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Post# 31104901

RE:RE:Protech Home Medical Announces $25 Million Bought Deal Offer

PTQ's equity is $21 mil and debt is $29 mil. By adding $25 mil new equity, co. can add $25 mil debt too, so $50 mil combined capital increase will buy targets with $100 mil in revenues.   

lscfa wrote:

$25 mil buys targets with $50 mil in revenues and $5 mil in ebitda (10% margin).  

Synergies and cost savings increase ebitda margin to 20% => $10 million contribution.  

 

 

brentski99 wrote: Unless things have changed drastically in the banking industry lately, I believe that Commercial Banks will lend at a ratio of 2 for 1 against pledged securities (especially cold hard cash) on a prime plus basis. Would probably have to agree on an assignment of receivables but it would be worth it if the right deals come along. This would stop further dilution with the exception of course the exercise of the warrants. If I am correct - the total of all this available capital could or would be around 100 million dollars when the options are exercised.

Are there any finance expert banker types here that can comment on my theory? Back in the old days in my past life it is something I would have been able to do. Am I out of touch and living in the past or have things not changed that much. Banks make money on loans and cash is the best security still - isn't it?