Tuesday, October 23, 2018 0 comments ++[ CLICK TO COMMENT ]++

Purchase: WesternOne (TSX: WEQ)

WesternOne (TSX: WEQ) is being liquidated and it seems like an attractive investment so I took a position in it. I came across the idea from Sculpin at Corner of Berkshire and Fairfax (thanks).

You can read the official press release but basically they are winding up operations and expect to pay out $2.20 to $2.43. It will be adjusted up or down by working capital but hopefully no negative surprises emerge. Initial distribution in Q1 2019 with another one upon liquidation.

A shareholder vote is required but about 38% is held by insiders who approve the deal. So I think risk is low.

The return is going to be driven by how much is paid out early. I'm hoping most of it will be paid out by end of Q1 2019.

Purchase price (TSX: WEQ): $2.10

Return Expectation

Liquidation price (conservative, low): $2.20
Return: 4.8%


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