OTCQX:MRVFF - Post by User
Comment by
lscfaon Dec 28, 2022 9:48am
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Post# 35193334
RE:RE:RE:RE:RE:Buyout
RE:RE:RE:RE:RE:Buyout
lscfa wrote: lscfa wrote:
UglyKidStock wrote: Shareholder Robbery under the distraction of Xmas. Stealing it for debt - cash with no stock option over hang and all of the good news on approvals coming in first half 2023. Without the options 'warrants owed to Red Oak the Enterprise value is quite low. These things were rapidly expiring already. What is Red Oaks angle ?
I agree it's highway robbery and a sellout by mgmt. NR does not mention co. had $31 million CAD in cash at Sept 30, making net debt only $75 million CAD. This means the buyout offer only values next year's ebitda at 4.165x using Bllom Burton's forecast of ebitda. If the multiple is raised to 5x the offer would need to be $2.94/sh. I'm voting no to this stink bid.
https://www.bloomburton.com/research/MRV20221116.pdf
| $ 000 Cdn | Buy out offer | Increased multiple |
| 2023 ebitda | 21.7 | 21.7 |
| Multiple | 4.165 | 5 |
| eV | 90.4 | 108.5 |
| Net Debt | 75 | 75 |
| Equity value | 15.4 | 33.5 |
| Shs o/s | 11.4 | 11.4 |
| Sh value | $1.35 | $2.94 |
more pricing options added to table...
| $ 000 Cdn | Buy out offer | Increased multiple | Increased multiple | Increased multiple |
| 2023 ebitda | 21.7 | 21.7 | 21.7 | 21.7 |
| Multiple | 4.165 | 4.5 | 4.75 | 5 |
| eV | 90.4 | 97.7 | 103.1 | 108.5 |
| Net Debt | 75 | 75 | 75 | 75 |
| Equity value | 15.4 | 22.7 | 28.1 | 33.5 |
| Shs o/s | 11.4 | 11.4 | 11.4 | 11.4 |
| Sh value | $1.35 | $1.99 | $2.46 | $2.94 |
Bloom Burton target price of $1.50 for Medexus implies a multiple of 7.74x on 2023 ebitda.
https://www.bloomburton.com/research/MDP20221110.pdf