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  5. HPS.A: Hello 5i How do you feel about the HPS bought deal? [Hammond Power Solutions Inc. Class A Subordinate Voting Shares]
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Q: Hello 5i
How do you feel about the HPS bought deal?
Logical? Good opportunity to add to a position?
Thank you
Dave
Asked by Dave on September 25, 2024
5i Research Answer:

No one likes insider selling, but the math makes us less concerned here. Mr. Hammond is selling just a portion of his shares. And, with the stock up 78% YTD and 190% in 52-weeks, even with the sale he has far more dollars-at-risk than he did even a few months ago. Prior to the sale he owned 31.1% of the company, and we think with more than $500M still at risk he remains committed. The original discount was quite nice and we would be OK buying the deal or in the market with this sell off.