Akumin Inc T.AKU

RE:RE:Well...Regardless

[mjh9413]

OK I felt same way. Now we have the deal closed and expectation of around $750,000,000 of annual revs but it comes with a lot of finance costs.They already paid about $8MM/qtr on the 2025 Notes and about a total $0.9MM on the Wesley Chapel loan and commitment fee on the $55MM revolver. Now we can add ~$10.3MM to Stonepeak, ~$7MM on the new Senior Notes, total US$26MM/qtr. Plus there are high lease liabilities and interest costs.
Now we have to see how they apportion the acquisition costs and how much goodwill is added to the balance sheet...and will it ever be tax deductible?! 
What I do like is the size and breadth of the new company and I see prospect that Stonepeak wants them getting even larger share of market for these services, through further acquisition...don't know if antitrust competition rules might ever kick in.
I also like, as I said before, the Alliance people overseeing the whole company.
The number of shares might have increased only a little at acqun but those 30MM+/US$2.98 warrants...let's hope they are 'cheap.'
The obvious winners are Thailot (the price they got) and Stonepeak at this point (that 11% loan and payout options, well, they're outrageous, but how else would it have got done?)
The lenders must feel the financial adjustments will not be too material...let's hope so.
With all said I do not see AKU share price moving too much ahead short term. Look forward to post acqun financials and re-rating...UP.
GL