Beleaguered shareholders of Armtec received more bad news last Friday with the company announcing it would take a $140 million write down of goodwill, intangible assets and property, plant and equipment in the next quarterly report. Other bad news included negative guidance for margins of two of its business units.
Shares dropped to $2.45 in the August 8 market sell-off.
That must have pleased new investor Brookfield Asset Management who recently closed a borrowing facility of $145 million. In addition, Brookfield received warrants to buy about 4.5 million shares at a strike price of $4.40.
Let’s hope they are patient.
It is difficult to understand how this Guelph-based company managed to drive its share price down from $25 last year to $2.45 today.
That’s a double-double Whoops!