"DWS" TAKEOVER OUTLOOK October 16, 2021
J. Murray Souter
President & CEO
Diamond Estates Wines and Spirits Ltd.
Mr. Ryan Conte
Chief Financial Officer
Diamond Estates Wines and Spirits Ltd.
Gentelmen,
I am a DWS shareholder since a little over 1 year for the simple purpose of anticipating a potential takeover by Lassonde Industries Inc., its major shareholder, followed by Oakwest Corporation Limited.
I dont personally see how Lassonde Industries would be prompted to pay an important premium, therefore a high price to acquire DWS, either in cash or by offering (LAS.A) shares to DWS shareholders in such a takeover transaction, given DWS current market profile.
If DWS was such an attractive company, it would have been acquired several years ago, instead of bringing Lassonde Industries to buy an approximate 20% stake, I believe at $0.19/share, and subsequently contributing to a convertible debenture investment.
At roughly $0.15, DWS shares are basically traded in a range of $0.06 from its 52-weeks-HIGH of $0.21 on the Toronto Stock Exchange, namely allowing day traders to push the stock up and down, back and forth, between $0.15 and $0.21.
Respectfully, if DWS's management/board of directors were truly hopeful and serious about a "turnaround", they would not let such a $0.15 share price remain in limbo, so to speak.
They would proceed to a share "roll-back", perhaps of a ratio of 1 : 10 (1 new share for each 10 old shares). The company's share float would therefore be reduced from approximately 278M shares to 27.8M shares, resulting in a new share price hovering around $1.50. At least, exiting a penny-stock status would be an appropriate measure to shy away speculative traders.
Obviously this outcome isn't likely to happen without Lassonde's blessing.
All in all, it is in my view a sheer waste of time to maintain DWS as a listed public company and i hope that a timeframe of 6 to 12 months will see a takeover becoming reality.
Yours sincerely,
Shareholder