RE:RE:RE:RE:Conversion of pref shareshotdog123 wrote: Honestly I wish I knew more. More shares never helps though. Are you saying 69.4M shares before they merge with the current 39M subordinate voting shares on a one for one?
I went heavy into TOI after having watched Constellation climb for the last 10 years!
That's what I read in their MD&A, which would bring total share number over 100M. I'm interested as well due to the Constellation link, but doing my DD, I was a bit concerned with the one for one pref to share conversion. They don't provide any clear info anywhere, but the charge they took in the last quarter of $2.4B is related to the conversion of 64.9M shares.
From note 9 in their financial statement, they have 39.4M preferred shares that can be converted on a one-for-one basis and 19.7M Topicus Coop preference units which can be converted on a one-for-one basis as well. Considering the redemption price of EUR 19 (around $28 CAD), all these prefs will make a huge gain from the conversion.
It seems like a huge dilution for shareholders. If the share price holds, this will raise market cap to $8B. That would put the share price at 10x revenues and 34x net cash flows. It makes it more expensive than Constellation Software.
I guess I'll stick to the sidelines for now.