The news came out after Monday’s closing bell and a trading halt followed, leaving traders to react this morning to WesternOne Inc. (TSX:WEQ) selling its subsidiary Britco LP and its manufacturing business stake in the U.S. for an aggregate of $45.1 million. Less than an hour into the trading session, shares have shot ahead 34.5 percent to $1.95.
Shares haven’t been over $2.00 since the first week of November 2016. In fact, the Vancouver-based company’s stock hasn’t been over $1.60 since November 14. Making what technical traders refer to as a “double bottom” pattern, WEQ shares found support in recent months around $1.25 before being catalyzed today.
At the time of the news release, WesternOne had a market capitalization of approximately $24.7 million.
Britco fetched the largest lion’s share of the cash, with the assets, including the modular space rental business, sold a subsidiary of Black Diamond Group Ltd. for $41.0 million in cash. The 64.55% equity interest in Britco USA, a provider of temporary and permanent residential and commercial modular buildings, amongst other things, was sold to a group of investors led by the unit’s current management team for about $4.1 million in cash.
WesternOne says that it is now looking at options for Britco’s Canadian manufacturing operations. The company wants to focus its efforts on operating and growing its WesternOne Infrastructure Services division. This unit offer aerial and construction heat services throughout western Canada.
