CEO: Pop and then by August reassessPresident's Club Webinar:
https://vimeo.com/131444187
In the President's Club Webinar there is a significant pop in the stock expected and by August we are to reassess an outsized short-term position in the stock. This period covered an anticipated road show to high power funds to mid-July and would also cover the next earnings report due shortly. The Tennessee and Colorado acquisitions also appear to have been heading to completion and could be for 80-90-100% cash limiting dilution while adding $8 million in adjusted EBITDA. They significantly updated their guidance since, as was anticipated in the webinar, and are heading off the Venture exchange to the senior exchange. They also announced the recent Mid-West LOI for another $6.5 million in adjusted EBITDA since the webinar.
In the spirit of an expected pop through August Dalsin and Greene may have converted the significant option positions to common shares now so they don't have to pay the higher taxes on the options upon expiry should the stock pop between now and then. They will already be in common shares for the long haul ahead of the pop. They also put additional money into PHM as the options sold for cash didn't provide enough cash to fully cover the options they converted to common share. They also had to pay the taxes. They may be sending a strong signal that appears consistent with their webinar expecations, in my opinion. By August with everything in place the stock should react quite favorably.
New LOIs
Completed LOIs(Tennessee, Colorado, etc.)
Updated guidance for year-end run-rate
TSX listing allowing new participants
Earnings report
Effects of the road show and higher profile once all LOIs and finalized and once on the TSX
New organic growth strategy adding to cross-selling and acquisiton strategy
And if Greece and China play along the upside from the current price could be very strong given analyst targets. They have also talked about levering up the balance sheet with ~$80 million in debt given their EBITDA to make further acquisitions without the issuance of dilutive stock so maybe a credit facility could follow in the near future once anticipated acquisitions are closed and cash has been reduced.