Biorem Inc V.BRM

RE:RE:Recommendation

[Possibleidiot01]

fdfd12 wrote:
I have ZDC, PNG, VHI and DRX as small caps.

Being also a 5I member for 7 years, I have not heard of BRM!
There is NO volume compared to the others.

This magnifies the risk since it appears smaller than the others.

What can you tell us about it?

retiredcf wrote: In the higher risk/higher reward small cap part of a portfolio, I'm interested in a number of companies. Any that stand out as particularly attractive candidates that I should acquire?

All comments are assuming readers understand the much higher risk of small caps and comments are to be in the context of small caps only. BRM looks good and is priced well. The sector has growth potential also.....MDA is not small but very interesting right now as a unique company in Canada winning big contracts; ZDC looks good and can be bought. Therefore, we would concentrate buying to MDA, ZDC and BRM for growth. (5iResearch)

If you think the stock is illiquid now , you should have seen it a few years when it traded by appointment . Just a handful of trades per week. Until

Closing of Transaction to Purchase Common Shares for Cancellation

BIOREM is pleased to announce that it has completed the transaction to purchase for cancellation 23,434,121 common shares at $0.5256 per common share from TPFG Environment Investment Limited (“TPFG”) for an aggregate purchase price of $12,316,974 (the “Share Repurchase”).

The Share Repurchase was previously announced on August 5, 2021 and approved by disinterested shareholders at a Special Shareholders meeting held September 16, 2021. The Share Repurchase was financed through the use of a portion of the Company’s existing cash reserves and the proceeds from the issuance of $4 million in term debt and a $1 million operating line of credit. Immediately following the closing of the Share Repurchase, the Company has 15,477,437 issued and outstanding Common Shares.

“This is a significant milestone for the Company” said Derek Webb, President and CEO of Biorem. “We believe that the purchase and cancellation of this large block of shares will result in significant long term accretion of earnings per share and share value to Biorem shareholders.”  

In connection with the Share Repurchase, Mr. Ken Chen and Ms. Wei Han have resigned as directors of the Company.  The Nominating and Corporate Governance Committee of the Board of Directors is in the process of identifying candidates to act as replacement directors until the next annual meeting of the Company. 

This is a stock where liquidity has increased with success ; management was free to pursue business that previous controlling shareholders didn't see the value of expanding into.

IMO , you shouldn't be scared of lower trading volume.
JMO.