RE:Financial recap Thanks TorontoJay, I see that you did highlight 'residual working capital' at the end of your above analysis. However, this is a significant component of the valuation calculation - looking at the most recent F/S, this working capital is worth roughly $10M (or another $0.38/share).
If we add the above to your net cash calculations after settlement of the deal, we would arrive at total cash + working capital of $0.90/share. We are effectively trading at this valuation now and no value is being ascribed to the Avante Security business.
If we tack on the $11m conservative valuation you've noted above, we arrive at a valuation of $1.31/share (a 40% premium to Fridays close).
However, I would argue that management/the board has intentions to significantly grow Avante Security and sees more value than the $1.31/share calculated above... as Fairfax did convert their debentures at $1.56/share