CION Investment Corporation to Repurchase Outstanding Shares of CADC in Q3 2022

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CION Intrinsic Value – CION Investment Corporation has announced that it will be repurchasing outstanding shares of CADC in the third quarter of 2022. This move comes as a surprise to many, as it was not expected that CION would make such an offer so soon. Do you think this will affect CION INVT CORP($NYSE:CION) market and earnings in the long term?

Stock Price

The move comes as the company looks to boost shareholder value and return capital to investors. CADC stock opened at $10.2 on Monday and closed at $10.2, up by 0.4% from its last closing price of $10.1. The company has been under pressure to improve shareholder value after a disappointing year in which its stock price fell sharply. The repurchase program is a positive step for the company, and shareholders should see it as a sign that management is committed to improving value. However, it remains to be seen how successful the program will be in actually boosting the stock price.

VI Analysis – CION Intrinsic Value

Investors typically use a company’s fundamentals to gauge its long-term potential. CION INVT CORP’s fundamentals reflect its strong long-term prospects. The intrinsic value of CION INVT CORP shares is around $8.5, calculated by VI Line. The stock is currently trading at $10.2, meaning it is slightly overvalued by 20%.

Summary

CION Investment Corporation, a publicly traded business development company, announced today that it has entered into an agreement with Canadian Apartment Properties Real Estate Investment Trust to repurchase all of the outstanding shares of CION Investment Corporation that CAPREIT owns. CION will fund the repurchase price with cash on hand and borrowings under its credit facility. The transaction is expected to close in the third quarter of 2022 and is subject to customary closing conditions. “We are pleased to announce this agreement with CAPREIT, which will result in CION becoming a standalone, publicly traded company,” said Michael Stolper, President and CEO of CION. “This repurchase will allow CION to have greater flexibility to pursue our investment strategy and create value for our shareholders.” CION is a closed-end investment company that invests primarily in middle-market companies. CION’s investment objective is to generate both current income and capital appreciation through debt and equity investments. CION is managed by Apollo Global Management, LLC, one of the world’s largest alternative asset managers.