WildBrain Ltd T.WILD

RE:RE:RE:DHX.RT

[MOJOJONO]

I sold distributed rights the day of, as I don't have enough cash in my registered account to buy more, and it wouldn't have averaged down much anyways.

DHX (Wildbrain) is raising $60 million through this rights offering: $50million to pay down a term loan. $10 million for general purposes. There is a $1.5 million as a payment to Fine Capital (Remember this name?) for acquiring everything that is not exercised. Yes, it is basically an  Fine Capital increasing their stake in DHX. They are now 33.80% owners of DHX.


This is a pretty significant dilution: 26.61%.

There are currently 135,004,863 Voting Shares outstanding. Following completion of the Rights Offering, WildBrain expects that there will be approximately 170,933,007 Voting Shares outstanding, on a non-diluted basis.

https://web.tmxmoney.com/article.php?newsid=5484158845361012&qm_symbol=DHX



Pursuant to the Rights Offering, eligible holders of Voting Shares will receive one Right for each Voting Share held.  Every 3.757635354 Rights will entitle the holder to subscribe for one whole Voting Share of the Company at a price of C$1.67 per Voting Share (the "Subscription Price"). The Subscription Price is equal to approximately a 20% discount to the volume weighted average trading price of the Voting Shares on the Toronto Stock Exchange (the "TSX") for the 5-day period ending on October 8, 2019.

 

The Rights are exercisable until 5:00 p.m. (Toronto time) on November 15, 2019 (the "Expiry Time"), after which time unexercised Rights will be void and of no value.

https://web.tmxmoney.com/article.php?newsid=4979983828200761&qm_symbol=DHX


Debra Fine @ Fine Capital Partners 2017 Ira Sohn Conference:

Making Money From Teletubbies And Degrassi. No Drake Necessary

 

Debra Fine of Fine Capital partners made a thorough and humorous pitch for Canadian media company DHX Media, a holding company with rights to childrens programming ranging from Bob The Builder to the Teletubbies and even 90s high school saga Degrassi, which propelled Drake to fame.

 

Fine said DHX's CDN$5.50 share price wildly undervalued the company's licensing opportunities and the value of its content library, while also underestimating its earnings growth potential. Most important to Fine's bull case is a belief that children's content is evergreen, thus its value does not diminish over time. That means DHX benefits from a near constant refresh of interested viewers, aged 2-to-10.

 

Presently generating about CDN$125 million in annual EBITDA, Fine believes increased prices paid by streaming content providers for DHX's programming could add $60 million to the company's bottom line. “The value of children’s content does not diminish after the first broadcast,” Fine said, citing a big recent bump Netflix NFLX +0% paid to continue showing Degrassi.

 

Further down the age spectrum, Fine highlighted DHX's $30 million acquisition of rights to the Teletubbies, a franchise created by the British Broadcasting Corporation that once generated $2 billion in annual revenues at its 1990s peak. If Teletubbies is half as successful as it was during the 1990s, it will more than double DHX's EBITDA.

 

Though the stock trades at CDN$5.50, Fine believes DHX should trade at CDN$30 a share, with upside of as much as CDN$46 a share, citing the price Comcast CMCSA +0% paid to acquire DreamWorks Animation DWA +0%.

https://www.forbes.com/sites/antoinegara/2017/05/08/the-best-hedge-fund-trades-from-the-2017-ira-sohn-investment-conference/#1195c9b84b2e