Convertible Conversion price is $8.25There’s nothing wrong with a $5 share price when you’re adding to your position like I was this week! The 5% yield is very nice and of course the coming 40% increase to capacity v. the current plant that is operating at 98% capacity is really exciting.
One indicator of today’s bargain share price are the convertible debs. They announced a $15m convertible deb offering on Oct 3 2016. These have a 7 year term to 2023 and the conversion price is $8.25. The shares were trading at $7 when these debs were announced.
Q3 ended 2016 they had $59m in revenues and had NI of $2.8m. Two years later, at the end of Q3 2018, they reported revenues of $67 million and net income of $3.6m (increase of 29%). So with commissioning less than 3 Quarters away, and Mr. Market wants to offer you a great deal on cheap shares, you take it.
https://www.marketwired.com/press-release/ten-peaks-coffee-company-closes-15-million-issue-convertible-debenture-way-private-placement-tsx-tpk-2165675.htm