TSX:SOT.DB - Post by User
Comment by
Tree2treeon Nov 11, 2024 11:11am
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Post# 36306593
RE:RE:RE:RE:RE:RE:sot_-_q3_2024_financial_statements_vsedar Note 28
RE:RE:RE:RE:RE:RE:sot_-_q3_2024_financial_statements_vsedar Note 28
If the buyer is a bigger REIT with some working capital surplus, they could just make a bid for the common shares and roll all of SOT's assets and debts into their REIT. Or possibly raise a modest amount of capital based on their existing financial strength. They can also take their time to selectively dispose of assets that are not core to their strategy. Getting swallowed by a bigger REIT means that SOT's management structure disappears, operating costs go way down and profitability goes up.
I think this is an option that SOT is keeping in their back pocket. But their first choice is likely a financing that allows GA and other major shareholders to have a crack at winning back their lost money.