Q: After market closed on Jan 8,BEW announced a US$600k acquistion payable by US$250K cash & issuance of of 690141 shs @ 0.71 = US$350k. Positive response as up .04 to 0.73 today.Please comment and going forward.Add,Hold or Sell. Txs for u usual great services & view. All the Best for the New Year
5i Research Answer:
The purchase is less than 2% of BEW market cap, so not hugely material, but looks decent. It adds $1.7M revenue and $0.238M income (12 months) so should be accretive. The company was not named so it is hard to know more. But with US operations it should take a bit of 'tariff' pressure of the stock. We would still view it as a HOLD but we like the recent news and positive momentum from the company.