Topicus.Com Inc V.TOI

Conversion of pref shares

[Capharnaum]

Looking into Topicus. From what I understand, the conversion of pref shares to equity will result in shares outstanding doubling. Is this right?

[hotdog123]

Not sure. Are there also 39M preferred shares?  Not going to help the share price with almost 80M shares.....

[Capharnaum]

According to the MD&A, there would be 64.9M pref securities: "At March 31, 2021 the market price of Topicus’ Subordinate Voting Shares closed at CAD$82.54 or approximately €55.89. The increase in value from €19.06 to €55.89 multiplied by the 64.9 million Preferred Securities outstanding equals approximately €2,391.2 million." I'm thinking this may lead to heavy selling pressure

[hotdog123]

Honestly I wish I knew more. More shares never helps though.  Are you saying 69.4M shares before they merge with the current 39M subordinate voting shares on a one for one? I went heavy into TOI after having watched Constellation climb for the last 10 years!

[Capharnaum]

That's what I read in their MD&A, which would bring total share number over 100M. I'm interested as well due to the Constellation link, but doing my DD, I was a bit concerned with the one for one pref to share conversion. They don't provide any clear info anywhere, but the charge they took in the last quarter of $2.4B is related to the conversion of 64.9M shares. From note 9 in

[hotdog123]

8B market cap isn’t unthinkable in the future but overnight?  Yikes.  I bought in for the long haul so fingers crossed. Perhaps this latest drop has this factored in already. Who knows.  I do do appreciate the info. Please keep it coming..