High Arctic Energy Services Inc T.HWO

Update - Thoughts

[longrun86]

I am happy with the update. They got skewered for an unpalatable plan to shareholders and are course correcting. That is the honourable thing to do as it means they have accepted the feedback. 

Until there is a path forward and the business mandate is clear, the suspension of the dividend in my mind is a sign of functioning governance. From a tax perspective, having a higher tax free return of capital makes more sense than an eligible dividend.

I like where this is going now that there appears to be some rational thought emerging.

In 6 to 9 months we could be in a much different place. 

Patience is a virtue!

LR

[Stonksonlyup90]

You really think that the Board suddenly had a change of heart and now cares about shareholders... certainly not! They are being forced to course correct only because minority shareholders are speaking out.

[JonathanJSmith]

Buy why the cessation of the dividend? It makes little sense given the company's balance sheet and positive cash flow. Last Q alone they made almost $4M in cash - $3M of which were added to receivables. Those receivables should be converted in this Q as they're typically net-30/60/90. $18MM AR last Q.  I hope that this quest they're on doesn't consume too much resources or

[auburn2]

Maybe they are spinnnig off High Arctic International as a public company. It will need some cash on the books to start.

[tylerreddick]

" Maybe they are spinnnig off High Arctic International as a public company. It will need some cash on the books to start. " HAI will have lots of cash, as existing HWO shareholders have to BUY their new HAI shares if they want to participate.

[auburn2]

I now suspect it will be a free spinoff, which is why they're trying to maximize cash.

[colourama]

Agree with your direction of thoughts, but a free spinoff doesn't seem to achieve their "unlocking of value" necessarily though (at least not at this time). I wonder if it could be something like a rights offering, but with High Arctic International publicly listed on an exchange somewhere to alleviate the private company concerns? Perhaps they are trying to maximize cash to provide

[Possibleidiot01]

I appreciate people and their theories about management's intentions. Every post I read just shows how poorly management has 1) executed on their plans and 2) communicaited what they intend to do and how they intend to do it . You shouldn't have to guess or intrepret what potentially is going on. Pass-fail grade - ongoing fail

[AusInvest]

Hi Tyler, It's my understanding that the plan was to do the spin-off via a rights offering. Which essentially means you buy HAI (high arctic international) from HWO and the proceeds go to HWO which you also own. Either way the proceeds go to you as the owner. I don't personally have an issue with a rights offering as it gives shareholders the choice whether they want to participate or not

[colourama]

Another question about the dividend is, why suspend it now? Why be so opaque about justification? Their reasoning is really odd - the total return of capital is the same as the intended amount announced in May, so how are they "maximizing" the return of capital when it is no different to their original announcement? What does a delay in reorganization have to do with the need "to