RE:RE:kind of like a semi maybe in the future reverse takeover???There is a reason the stock price is going down.
1. Unit holders of the starlight fund will receive Tricon shares. Some of these unit holders will now be liquid and will sell their tricon shares. So, current shareholders are selling before this happens.
2. If you look at the presentation below, page 15, they show only a 29 million net cash flow improvement after debt payments, However, debt payments are only interest. How about principal payments? If some amortization is included, this investment will be cash flow negative. That's how I see it. Even if we only include interest, 29 million / 1.4 billion does not seem like a good return to me.
3. This company has a lot of debt. They will need to consider dividend increases carefully. I would think its prudent to have cash on the balance sheet.
These guys at Starlight made out like bandits.
https://www.triconcapital.com/wp-content/uploads/2019/04/Transaction-Investor-Deck-vFINAL.pdf After this deal, TCN will have ~200 million shares and 121 million of free cash flow.(Page 16)
Thats ~160 million Canadian. 160 - 200 million * .28 leaves around 100 million free cash flow for now.
If the dividend goes to 40 cents per year and stock price down to 9, that gives me a return of 4.44 percent. Not so good. I might bite.