WEQ Holdings Inc T.WEQ

RE:RE:redemption of $1,007.67 for each $1,000 principal

[MRCIQuebec]

Thanks sculpin2 for this constructive message.
There is some similarity between WEQ debenture redemption and DGI debenture redemption (december 2015). It's interisting to see what's happened with debenture holders of Data Group: 
For each 1000$ debenture redeemed, 29 086 shares were freely issued: that's represents a value of 727.15$ at actual price (2.5¢/DGI share). Inside the month after the announcement, the 100$ debenture was varied between 32 and 55$. A debenture holder that paid 550$ for 1000$ nominal, make a potential capital gain of 32% ! It's not bad even if the share price was ugly (2.5 ¢ compared with 17.5¢ the day of redemption announcement).

I think that's a opportunity to buy WEQ.DB.C (I maked a buy this morning). Some investors don't want penny stock in their portfolios: they bought debt... not shares! For example, it's probably the case for fixed income fund manager. Consequences: Debenture price goes temporarily down because they need to sale. If company strategy wills enough good to survive, a potential gain is possible in short or mid-term. Be aware that this redemption will diminish interest cost through debt reduction, will increase company capitalization and probably satisfy the Bank that's enough secure to lend money.