Q: Could you please comment on the recent announcement that Vitalhub "filed and obtained a receipt for a preliminary short form base shelf prospectus with the securities regulatory authorities in the provinces of Alberta, British Columbia, and Ontario"?
What does that mean for shareholders? Do you view this as a positive or negative? How does this affect your sentiment towards the company and it's near term share price?
Thank you.
What does that mean for shareholders? Do you view this as a positive or negative? How does this affect your sentiment towards the company and it's near term share price?
Thank you.
5i Research Answer:
It's a basic regulatory filing that will allow the company to raise up to $250M in either debt or shares, for a period of 25 months. It in no way is an obligation for the company to issue anything and is more of an 'option'; if it decides to do an issue, it has thus already filed the basic paperwork required. It is a fully-neutral event, unless and until the company decides to actually do something. It currently has $91M cash, so we would not expect much here unless the company has an acquisition target planned at some point.