ReactionPropel just dropped about 10% after announcing an acquisition of Stagemount, despite saying the acquisition would be accretive in 2024 and 2025. What do you think of this acquisition? Is there something I am missing?
The bought deal offering in conjunction with the acquisition is likely what is weighing on shares. We think the details of the purchase look fine and are not too concerned with the announcement. Of course, not issuing shares would always be ideal, but it is part of the purpose of being public (access to capital) and at least the capital is being put to a use that should generate returns over time. (5iResearch)