GREY:ACEXF - Post by User
Post by
allison5120on Jul 10, 2017 4:37pm
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Post# 26452566
QIC - Expect 2 more deals to close in the near future
QIC - Expect 2 more deals to close in the near futureEarlier this year QIC announced 6 deals (LOIs) of which 4 deals have closed. See also the recent June 30th news release issued by QIC.
If I'm not mistaken the remaining 2 deals are scheduled to close sometime this month - although deals can drag on for various reasons. I expect that they will be immediately accretive.
I also expect additional deals will be announced in H2 2017 as QIC's roll up strategy continues.
Hopefully the debt used to finance these acquisitions can get refinanced at a lower interest rate once the company's financial statements demonstrate positve cash flow etc. I believe they are currently paying 16% interest which is quite expensive (although less expensive than issuing huge numbers of shares for an equity raise).
I don't believe the debt can be refinanced until late 2017 or in 2018. It would certainly bolster cash flow and earnings if they didn't have to pay 16% interest etc.