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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi
Sangoma recently announced the purchase of Digium for US28,000,000. Once the transaction is signed, Sangoma intends to finance the deal by borrowing approximately $21 million. The new credit facility will be drawn in US dollars, and will be repaid over 7 years and is expected to have an interest rate of 6.0% to 6.5% per annum at closing. What do you think will be the monthly or annual payments? Will the payments represent only interest costs or will they include a portion of capital?
On page 8 of the investor presentation, it is written that Digium has about $15,000,000 in tax NOLs. Is it fair to assume that Digium has lost $15,000,000 over several years and that Sangoma will be able to use the tax NOLs in order to avoid paying taxes on future US earnings?
Is the Nols considered an asset? Will it show up in Sangoma's balance sheet?
If Digium did not have $15,000,000 in tax NOLs, what would have been a fair transaction price?
What is the approximate value of $15,000,000 in tax NOLs?
What is the approximate percentage of the purchase price attributable to the $15,000,000 in tax NOLs?
Thank you and have a nice day.
Read Answer Asked by Gilles on August 29, 2018
Q: IDM Mining, traded on the TSX - V.

I don't own this, don't typically look into penny stocks and I've only recently been made aware of this company. However, IDM is surrounded by other projects with great resources (Bruce Jack, KSM Seabridge, Garibaldi) and they appear to have support of local communities and First Nations. Stock is trading at $0.07 and apparently have gold reserves at 7.53 g/t. The "Golden Triangle" does have some pretty incredible mineral deposits:

http://www.mining.com/web/golden-triangles-red-line/

Your comments on a high risk/high reward play here.

Cam.
Read Answer Asked by Cameron on August 28, 2018
Q: My first reaction to the big deal announced this morning was to sell all my shares. I don’t understand buying a company for so much that is ebitda breakeven. I realize the recurring revenue is good and maybe this gives them cross selling opportunities but will this deal not result in diluted eps and ebitda/share? What’s your take on he deal? Thanks
Read Answer Asked by Scott on August 27, 2018
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