Quipt holder/suitor Forager highlights premium in offer

Executive Summary

• Forager Capital Management, holding 9.7% of Quipt Home Medical Corp., criticizes the board for failing to engage constructively with its $3.10 per share cash acquisition offer submitted on May 17, 2025.
• Forager argues that the board's inaction is eroding shareholder internal rate of return (IRR), noting that the offer represents a 120% premium to the unaffected share price, significantly exceeding the 2024 industry average premium of 37.5%.
• Forager reiterates its commitment to pursuing a transaction and its willingness to improve the offer if the board engages constructively.

Key Details

• Acquirer: Forager Capital Management
• Target: Quipt Home Medical Corp.
• Offer Price: $3.10 per share in cash
• Offer Date: May 17, 2025
• Forager Ownership: 9.7% of outstanding shares
• Premium: 120% premium to Quipt's unaffected share price prior to the May offer
• Industry Context: Houlihan Lokey reported that 2024 take-private transactions had an average premium of 37.5% and a peak premium of 106%; Forager's offer exceeds both.
• Forager Stance: Willing to improve the offer upon constructive engagement from the board.

Notable Quotes

• "Had Quipt's board constructively engaged, the transaction could have been completed by now under the timeline outlined in the May offer. Shareholders would have locked in a 120-per-cent return in under six months -- a gain that could have already been redeployed into new opportunities."
• "Forager's offer -- a 120-per-cent premium to Quipt's unaffected share price prior to the May offer -- would exceed every transaction in the report and is more than three times the average."
• "We remain committed to pursuing a transaction that delivers immediate and compelling value to all Quipt shareholders. We reiterate our willingness to improve our offer upon constructive engagement from the board."