RE:RE:Desjardins comment on 6 healthcare stocks - cantechletterI "think" Think would be foolish to even entertain making another acquisition for the forseeable future unless they want to do an equity raise at a discount to whatever their average share price is (likely over a 30-day period), which is probably what it would take to entice underwriters or private placement investors to take the shares. So if you view this as shareholder dilution, it is is not a great option IMO.
Taking on debt? If they are trying to pay down debt, first they would have to generate the cash to do so. If they accomplish their debt reduction goals, why would they turn around and take on more debt to finance an acquisition, likely at even higher interest rates than they pay now if the BOC boosts them as expected this year, not to mention the premium on top of that lenders would likely ask for given the size of the company? I find these companies that are serial acquirers yet don't have either the share price or the low debt to do so without doing damage to existing shareholders or their balance sheet play a very risky game, and it shows in the current share price of THNK even if you take into account the drop in share price that many other Canadian small cap stocks have experienced in the "tech wreck" of 2021 and now into 2022.
Re. being taken out: Would large shareholders be willing to vote in favour of a takeout if the price offered was / is considerably lower than the average cost per share they paid unless they believe they've made a big mistake investing in the company in the first place and just want to exit the name?
Re. expiration of options: I believe Boards often simply offer another block of options at lower strike prices to individuals in top posts, so they get a fresh start in terms of exercising them.
IMO the best route for THNK to go is simply work with what they currently own to attain profitability while strengthening their balance sheet. Many investors think the more acquisitions, the bigger and thus better the company is, but there is a cost to acquiring a company, and if it proves not to pay off in the way expected, the acquistion will have untlimately hurt the company, not strengthened it.