TSXV:EVGN - Post Discussion
Post by
retiredcf on May 18, 2022 8:22am
RBC
Speculative Risk
TSXV: EVGN; CAD 2.78
Price Target CAD 6.00
All values in CAD unless otherwise noted.
Priced as of prior trading day's market close, EST (unless otherwise noted).
EverGen Infrastructure Corp.
Announces NCIB, but we don't expect material buybacks
Sentiment: Neutral
Our view: We believe the NCIB gives the company the flexibility to repurchase shares, but given the upcoming RNG expansion plans and pending acquisition, we believe the share buybacks (if any) would not be material.
First impression:
Announces NCIB for 5% of shares outstanding. EverGen Infrastructure announced that it has filed with the TSX Ventures Exchange a Notice of Intention to Make a Normal Course Issuer Bid. If approved by the TSXV, EverGen may acquire up to 668,370 common shares over the next 12 months (starting on May 23, 2022), representing 5% of the common shares outstanding.
Buybacks may be limited due to capital expansion plans in place. EverGen ended 2021 with ~$19.6 million of cash and equivalents, ~$2.7 million of restricted cash, and ~$6.5 million of loans outstanding. We believe the share buybacks (if any) would not be material because the company has RNG expansion plans that will cost ~$45 million over the next ~18 months. EverGen also has a pending acquisition of GrowTec that has a cash component consisting of $3.3 million and another $4.0 million upon achievement of certain milestones.
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