October 2021 Update – $REPH, $PSD.to, $ISV.to, $STC.v, $FTG.to, $VLN.to, $SYZ.to, $FRII.to, $RELL, $URB/A.to, $KUT.v, $DWSN

TIKR

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Thoughts on Market Activity

Nothing really eye opening here. Lots of inflation talk out there. Markets near all time highs.

What I’m Reading

• I’ll be on the platform in another 5 weeks for a powerlifting meet. I’ve been focusing on training and building my garage gym.

Posts this month

• MCR Update

• O&G Activity - USA

Developments on Companies Mentioned

• Recro Pharma - $REPH

  • Contract awarded

  • Master Supply Agreement with Otsuka

• Pulse Seismic - $PSD.to

  • Reported Q3 2021

    • Results were good

    • They have paid off all the long term subordinated debt

    • Issued a special dividend of 0.04

    • Started regular quarterly dividends of 0.0125

  • Announced NCIB for up to 10% of float

  • Here is the companies latest presentation

• Information Services Corp - $ISV.to

  • CEO is leaving at end of Jan 2022 for personal reasons and the current CFO will become CEO

• Sangoma Technologies Corp - $STC.v

  • They have graduated from the venture to the TSX starting Nov 1, 2021

• Firan Technology - $FTG.to

  • Reported Q3 2021

    • Still seeing slow grind higher in activity in commercial aerospace

    • Current and immediate near future valuation looks fair, upside looks to be if activity gets back to pre-pandemic levels in the next couple of years

• Velan - $VLN.to

  • Reported fiscal Q2 2022 and held a conference call

    • No questions on the call

  • Results were good

    • They look to be turning around from an operational standpoint

  • CEO transition

    • I wasn’t expecting this though I’m not surprised

  • I continue to hold my position

• Sylogist - $SYZ.to

  • Small acquisition

    • Valuation and earn out look to be quite reasonable although somewhat small top line in the context of their entire business

    • Still I think it shows that they continue to focus on M&A as promised

  • Acquisition of Pavliks

    • 11.5mil purchase

    • 1.22x rev

    • 7.2x ebitda

• Freshii - $FRII.to

  • Announced acquisition of Natura

    • 9.6 mil EV

    • 19 mil in ttm rev

      • 0.5x ttm sales

    • Buying 60% for 5.7mil with some additional earnout based on performance in 2022

    • Right to buy the remaining 40% through Q1 2025

• Richardson Electronics - $RELL

  • Reported Q1 fiscal 2022

    • Revenue was way higher and the highest in 11 years

    • Demand seems strong

  • I continue to monitor

• Urbana Corp - $URB/A.to

  • The company bought 600k shares privately from EdgePoint

  • The NAV has been above $7

• RediShred Capital - $KUT.v

  • Filed a preliminary base shelf prospectus

    • Up to 25mil for 25 months once effective

• Dawson Geophysical - $DWSN

  • Though I stopped following DWSN closely they announced that the Wilks Brothers LLC wants to purchase them for $2.34 per share

  • And the Attorney General of Louisiana released this

  • This will be interesting to watch

Long - $PSD.to, $VLN.to, $FRII.to, $STC.v, $URB/A.to, $KUT.to