Together with other matters, stockholders had to decide whether to approve the proposed acquisition of 360 VOX Inc. in exchange for 10.5M common shares and 5M common share purchase warrants. Probably, the stir of the shares was driven by the outcome of the meeting.
360 VOX is a privately-owned enterprise having international expertise in hospitality, resort, recreational, residential and commercial real estate development. VOX has projects in Europe and China, including a 45% interest in a resort project in France.
For now, investors’ reaction looks positive – on the Canadian market LCN moved up 10% yesterday. The volume was very large noting a two-month high. Over 5.1M shares changed hands during the heavy trade. It is interesting how the stock will perform from now on, perhaps this depends on how successful the above-mentioned deal will turn out to be.
It is not the first acquisition made by Leisure Canada. In July, the corporation purchased the domain name “visitcuba.com” in an attempt to secure an online platform that would offer information and resources to tourists and business travellers to Cuba.
It looks, Leisure is pursuing the implementation of its goals with these strategic acquisitions. The future will show to what an extent the corporation will be successful.
The managers will probably have to pay further attention to some negative figures in the company’s financial statements. A net loss of $0.9M for the second quarter of 2011 hardly sounds very pleasing to investors. On the other hand, Leisure had more than $8.8M in cash at the end of this June – this suggests some financial stability, does it not?
