Stock price Still very little resistance! This will pop on closing of the deal. I sincerely doubt an equity raise at these level. Likely 80 cents or higher
I suspect we get a double dose of positive news in august. 1) close deal, 2) financials show grow in current operations
just a kind reminder, the company they are acquiring is based on sept 2022 numbers.. I am optimistic there will significant growth YOY ...
post acquisition: 170-180 million in rev. 10% ebitda (adjusted due to fees related to acquisitions). 5 times ebitda = 85-90 million enterprise value. Less 40 million debt. 50-55million. Or 0.90-1.00... if they do show growth, a 7-9 ebitda is possible. (9X) or 153m enterprise value less debt = 113Million or $2 per share.
if someone were to buy them, we would probably get the 9-10 times ebitda.
come on august!