AutoCanada has responded to the activist shareholder as follows:
“AutoCanada Inc. (“AutoCanada” or the “Company”) (ACQ.TO) today acknowledged receipt of a letter from Clearwater Capital Management. The Company’s Board of Directors welcomes constructive dialogue with its shareholders. AutoCanada continues to execute a strategic plan that was reset following the first fiscal quarter of 2018. The focus of the plan is to strengthen the Company and enhance long-term shareholder value. The AutoCanada Board of Directors along with its advisors will consider the position of Clearwater and respond in due course.”
This seems like a friendly response. It seems to imply that AutoCanada is thinking of making some changes and it will probably allow the market to continue to be optimistic that something positive might happen. I would think the shares will rise a bit more on this response.