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Sangoma Technologies Corp T.STC

Alternate Symbol(s):  SANG

Sangoma Technologies Corporation is engaged in delivering cloud-based communications as a service solution for companies of all sizes. The Company is a business communications platform provider with solutions that include its unified communications as a service (UCaaS), contact center as a service (CCaaS), communications platform as a service (CPaaS), and trunking technologies. Its enterprise-grade communications suite is developed in-house and available for cloud, hybrid, or on-premises setups. Additionally, the Company provides managed services for connectivity, network, and security. It offers hardware and software components that enable or enhance Internet protocol communications systems for both telecom and datacom applications. Its product line includes data and telecom boards for media and signal processing, as well as gateway appliances and software. Its phones and devices include voice over Internet protocol (VoIP) hardware, headsets, telephony cards, and accessories.


TSX:STC - Post by User

Post by AlwaysLong683on Oct 04, 2021 9:23pm
266 Views
Post# 33965277

I'd Like To See a Listing on an American Exchange ASAP

I'd Like To See a Listing on an American Exchange ASAPGiven Sangoma is a CaaS stock competing against American rivals like RingCentral and 8x8 which are currently listed on American exchanges, I agree with STC's apparent desire to list on an American Exchange as well:


1) Proposed share consolidationSTC press release dated Aug 30 2021: 

"Sangoma’s management team has been studying the potential benefits of an additional listing of the Common Shares on a U.S. stock exchange. Based on Sangoma’s stage of development, certain developments in its industry, its observations regarding the market for its peers whose securities are listed on U.S. stock exchanges, and also from discussions with both U.S.-based investment banks and other advisers, Sangoma believe that there may be potential benefits of a listing on a U.S. stock exchange, including:

a significantly larger pool of available capital;

a greater average daily trading volume;

a greater number of U.S. retail and institutional investors; and

a potential increase in market valuation."


2) Reporting in U.S. Dollars going forwardSTC press release dated Sept 29 2021:

"Financial results for fiscal 2021 (and all prior years) were reported in Canadian dollars.
As communicated previously, and with the support of investors, Sangoma will start reporting in US dollars for fiscal 2022 (which started on July 1, 2021) and all subsequent periods, to help reduce the effects of foreign exchange.
As such, Sangoma changed to US dollars on July 1, 2021 and thus the Fiscal 22 guidance below, is also in US dollars, as will all future guidance."


In my view, having a U.S. listing coupled with reporting in U.S. dollars going forward would level the playing field between STC and its U.S. competitors and allow the American investment commjunity to make an apples to apples comparison among STC and its competitors, thus giving the company the opportunity to more clearly show the American investment community its value relative to other companies in the space and purchase shares in U.S. dollars on the same or similar U.S. exchange.



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