CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

RE:TD Downgrade - Sell - Price Target - $4.00

[ocean112]

Hi Nawar,

Do you agree with TD's assessment that a "best case scenario" if they sell NATO is $5.11?

In Exhibit 2, we present both our base case and high case valuations. Our base case valuation is based on our current forecasts, implying a target price of $4.00. Potential upside to our target price could come through the sale of one or both segments. In the event that a sale were to occur, we believe that the shares could command a value up to ~$5.11, as illustrated in our high case valuation.