TSX:SOT.DB - Post by User
Comment by
Detailoriented1on Oct 18, 2022 8:24am
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Post# 35030865
RE:A Good Move IMO
RE:A Good Move IMODetailoriented1 wrote:
They recently sold a property for more than last NAV so that supports the share price. They just bought an A level property with 30% vacancy and will start to fill those spots up and increase rental cash flow. They could have issued shares for this and diluted us but they issued debentures. If they are smart, they will do a small amount of NCIB with the excess from the debentures (and any over allotment) to make it look like they are on our side and supporting the stock. Do I care that conversion price on debenture is 5.50? Nope because if this gets to 5.50, I am well above my purchase price. They likely could have had a higher conversion price but that would have meant a higher coupon attached to the debenture. And excess cash from this can be used to fund dividends as well if it is temporarily needed. With 3 top level underwriters on this, it also gives us a little exposure to their advisors who may discover the stock. GLTA
but I should have added that I will still vote against this management in the spring as they need replaced.