Exactly as they said Preliminary base shelf prospectus is for 25 months. This basically achieves their $400M deployment goal in 2 years, 1 year ahead of schedule.
They have stated that they can use cash on hand and capital generated from WiLan. They also said would add on conservative levels of debt funding part of the acquisitions that way.
Do the math. This is consistent with their stated $400M goal.
These guys have done everything they said up to this point. Made a transformational acquisition in tolling. Have done a few tuck ins. Said WiLan would rebound in H2. It has. These guys are developing a track record.
When you look at it in this light it makes sense.
And when you read the HSBC loan documents you realize that the loan is floating rate when they could easily get a fixed rate loan, significantly lowering the weighted average cost of capital (WACC) of the firm and providing that funding for a longer duration. I think they wish they had the debt financing in place prior to the ETC transaction.
Frankly, I'd be supportive of using some of the debt to perform a leveraged buy back of 10M shares. The stock is ridiculously undervalued.
But, I'd say you don't do this if you think you are operating in business as usual way. These guys want to get rich.