Bought deal - why?!?!I'm still spinning on what the purpose was for the bought deal.
The Q3 2024 Conference Call detailed the following:
On October 4, 2024 we closed the acquisition of MedCurrent for approximately CAD 8.3 million in cash and adding 2.3 million in ARR to our patient flow suite. On October 29, 2024 we closed the acquisition of Strata Health, the largest transaction in our history. Total consideration of CAD 32.3 million included CAD 18.6 million of cash upfront with the balance in shares. This adds CAD 12.3 million of ARR to our patient flow suite.
On a pro forma basis, we have over CAD 50 million of cash to deploy and continue to generate cash every quarter. On a pro forma basis, inclusive of the acquisitions of MedCurrent and Strata, our annual recurring revenue is CAD 68 million. This is a substantial base that we're proud of and a key measure of success for us internally at VitalHub.
Later on in the conference call Dan stated:
It's been a fully busy Q4 trying to integrate and working to integrate this. We fully expect that it could take some time to digest these acquisitions.
So between these two quotes, the CEO is saying 'Hey, we have tonnes of cash, we're generating more all the time, and we're not going to need to deploy any for a while because we're busy integrated Medcurrent and Stata.'
To turn around and further dilute shareholders a couple weeks later, contradicting what you just said during the conference call, is disconcerting to me.
I'm sure the analysts and Donville's of the world have been personally enlightened as to what the real purpose of the bought deal is, individual investors I guess need to hope and hold on.