RE:RE:RE:RE:RE:RE:Investor relations ratingTo put this deal into perspective it values the entire company, including debt, at an enterprise value of $76 million. That is rock bottom low valuation (0.8x 2024 sales!). I've done the math assuming that higher bids may trigger Beedie conversion, so with that in mind a 1.0x EV/2024 Sales multiple wold imply a stock price of 0.50 cents. I would expect bidders like Well as being more than willing to pay that especially since wiping out THNKS debt unlocks almost $6M in additional cash flow. A typical premium for small cap Canadian companies like THNK is in the range of 1.5x to 2.0x EV/Sales. That would imply a share price of 0.85 to 1.25.
My expectation at this point is for a Well Health to bid somewhere between 40 and 50 cents. Also I'm sure that lots of investors are supporting the deal simply to put the company in play and see what else they can get.