Q: Hello, Cenovus filed a short form based prospectus on Friday. For what reason does a company in their position usually do this? Is it a likely sign that they are looking at an acquisition and need to raise funds? Thx
5i Research Answer:
These filings are regulatory filings made, and provide the ability to raise money IF the company decides to. It speeds up the process a little bit. But there is no obligation to do anything, and many companies do this as a matter of course. That being said, it could also mean a deal is in the works as well. But because of optionality, we would not assume anything here.