RE:RE:Going concern? Definitely not the last financing...Here is the near term problem based on latest financials:
A = Cash on hand: 36 million
B = Quarterly operating cash flow: 13.4 million
C = The share of quarterly cash flow unavailable to WELL: 5 million
D = expected cash flow over next four quarters = (B-C) * 4 = 33.6 million
E = expected available cash for debt repayment and servicing = A + D = 69.6 million
F = financial liabilities maturing in next four quarters = 153 million
As you can see, F is much, much larger that E (even after the financing). So before you talk about using cash for new acquisitions, how about explaining how they pay for the old ones?
There is a decent argument that WELL is on the cusp of technical insolvency (look it up)
thelostarc wrote: Because, as I have said many times several months ago, much to the redicule of the sad and sorry here, that they are lining up a big fish of an acquisition... they will use every resource within their reach to close a relatively "monster" acquistiion. This is not a tuck-in opportunity that they are circling... it is a fully grown deer with much hide to offer.
I said many times... WELL is in the capital allocation business... and in such a business there is no "right size" acquisition... there is only the opportunity to buy another firm/asset of potentially any size if the capital allocation equation makes sense.
Wait and see what Hamed and company have planned. Sure, the offering price was only $3.70/share but then again it's not that much money they are raising in comparison to the pre-reaction market cap. For us longs... this is just another step up in the size, diversity and reach of the business that we will benefit from 10, 20, 40 years from now.
Shorts can squash on this all they like. Opportunity on the market, WELL acting quickly. Exactly what I expect from an agile management team. And, an international soveriegn wealth fund in play... Norway? Abu Dhabi? Temasec? These fund are smart and they are long money... they will see 100x on their investment... Canadian and US healthcare sectors ripe for consolidation and subsequent technological innovation