trading $1 below Li Ka Shing's PP in recent financingi'm not sure why - is it closing risk? seems like a very high probability this closes given CRH shareholders have been suffering for awhile, ~45% of CRH is held by institutions, WELL financing is effectively in place with no conditions, WELL has covenants in the deal prohibiting soliciting a higher offer and WELL has ability to match any higher offer received, breakup fee (albeit not meaningful), etc.
i have been a CRH Medical shareholder for many years and this company is also highly acquisitive with a clearly successful strategy in place to bolt-on additional EBITDA every year. it's a very simple business than can be scaled. CRH just didn't have the capital to bite off more than ~$30MM in acquisitions every year.
i am really looking forward to seeing what Hamed can do with this company and i really believe it will be the driver of WELL's growth. it's not as interlinked with WELL's main business as they would make you believe, but it gives WELL some real cash compounding power and a balance sheet that can be leveraged.
Li Ka Shing obviously saw something in this deal or else the financing would not have been done ABOVE market price of WELL. that is extremely rare. there is something in this deal that will lead to share price growth, that is for sure.