Q: They are issuing new shares at $14.50. Your thoughts?
5i Research Answer:
The issue is fairly large ($80M with CDPQ coming in as well as the public) and a bit surprising, with no acquisition announced at the same time. But, debt at $400M is pretty high, and a better balance sheet was likely the main objective here. Insiders are buying $3.5M of the issue, and nothing really changes in terms of outlook here. With good growth prospects, a 3.3% dividend and a reasonable valuation, we still consider it an attractive small cap.