Saskatchewan Wheat Pool will head out on the road to educate investors Ñ and attract their money Ñ once the proposed capital restructuring of the company is completed.
The company is looking to raise $150 million in new equity from a rights offering, with the money going to pay down debt and improve the pool’s balance sheet.
As part of that process, the company will be putting together a “road show” to re-acquaint investors with the pool.
“I think there’s a lot of money in the marketplace that doesn’t have a home right now,” said Colleen Vancha, the pool’s vice-president of investor relations.
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The pool’s share price has risen since the company’s board of directors approved the restructuring Feb. 7, nearly doubling to a two-year high of 59 cents Feb. 28.
The price rise has triggered lots of calls to the pool from investors, including institutional investors and so-called “value investors”, who typically look at long term rather than quarter-to-quarter investment.
“Those are exactly the kind of investors you want to attract to the stock,” said Vancha, adding the increased interest presents an opportunity to educate people about the company.
Investors traditionally focus on quarterly earnings but grain companies can easily post losses in three quarters and still turn a profit for the year, as the pool did in 2003-04.
