Digging in a little… Running some rough numbers on what looks to be going with this deal...
They note that upon closing that the increased revenue from this deal will expectedly account for 14% of revenue generated. We generated 12.9 million last quarter add 14%, that would be 14.7 million. Now on the 12.9 million generated last quarter just under 8 million was distributeable cash which gave me a .62 rate of revenue to distributeable cash, which using that gives me a 9.1 million of expected distributeable cash... (Notes: in re-reading Mr Mikes added some extra revenues beyond what it produced due to catching up on what it was allowed to slide on during the pandemic, that's not a reoccurring revenue so the generation was a bit lower. But we should also note that my simple use of creating a revenue to distributeable cash ratio is also not that exact as just because they added a new revenue doesn't mean it will cost them as much through the office expenses so that rate might change to a .65 or something which is positive to the distributeable cash number)
Also looking at the public offering we will be diluted atleast 8% with a possible (expected) 10.7% after the overalotment is factored in. (I would have liked to seen a shareholders rights offering to attempt to raise the money so that shareholders get a choice in their dilution factor, but it's a rare option to use)
After running my numbers, we might be looking at 28.45 cents per share of distributeable cash with this dividend at 24 cents... but obviously we won't know this for several quarters and the actual number might be higher.
I do like the deal, but the key will be in the details and ability for the new company to grow. I do like the long term prospects of the deal but it will likely be a while before we see how well it will serve us.
With the new deal I'm willing to sit and give them a leash and not trade out unless the price gets crazy.
I agree with the other posters sayin this will likely trade down toward if not below the 2.80 mark from the offering... this number is interesting because usually they price down a little bit from where they feel the price is of decent value, so the 2.80 offer might mean management feels that after this deal they feel they are worth $3. I would also expect that if major movement were to happen it would be likely upon the closing of the offering date.
P.S. after over 2 years of Tommy expecting a deal to be imminent, we finally got one... hopefully we get anouther...