We think it is a good deal for the company and better than what we expected (which was essentially no decision on the review). ECN gets a big cash influx, a new shareholder and Board member, and faster potential growth. The joint venture with Skyline should expand the company's reach into loans for manufactured homes and expand its client base over time. The $$ will provide a sounder financial footing and more flexibility for additional growth initiatives. The equity financing is being done at a 10%+ premium to the market price, and we think investors should respond favourably here. Yes, there is dilution but the deal will help solvency and growth potential. We would view it as a HOLD with a possibility of a BUY depending on where shares settle out on this news. It remains small and higher risk, however.
5i Research Answer: