Management Circular is OutThe circular for the Beedie offer is now on sedar. We learn a few things from it.
1. THNKs below expectation financial performance and poor balance sheet management is 100% due to the decisions of an incompetent SA and senior management team. The circular presents facts that cement this reality.
2. Beedie initially offered 0.39 cents per share in October 2023 however the Board dragged its feet ultimately resulting in a 0.28 cent offer that later was increased to 0.32 cent offer.
3. Financial performance weakness continued for the past 8 months due to BioPharma and Clinic 360. These two acquisitions have turned into total busts. Once again, the result of incompetent management.
4. The company has looked into selling both BioPharma and Clinic360 since April 2023 but management has yet to find a suitable buyer at a high enough price
5. Despite knowing that THNK was likely to end up being sold management continued to pull a grand total of $5M in convertible debt from Beedie. Yet more incompetence and outside the interest of shareholders. This also ended up reducing the purchase price Beedie offered
6. Go shop period: Thus far 34 potential buyers have been contacted and 5 have entered confidentiality agreements (menaing they are doing diligence on THNK). That's a really good response rate and in my opinion signals that their is real interest amongst a number of parties raising my expectations for a bid. No acquisition proposal has been recieved from these buyers but its still early. I suspect that any offer will materialize at the end of this week at the earliest but mid next week seems more likely. The go shop ends March 16th.
So where do we go from here? With 5 NDA's signed I'm happy to wait and see if additional bids materialize and I'm encouraged that the probability of that occuring is relatively high. I also think it's possible that Beedie sweetens the deal potentially up to their original offer price.