Ann: Asset Sale Agreement, page-6

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Red Baron

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26/02/21

15:34

Post #: 51367062
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Originally posted by Cyph: ↑

the Australian training business is leaking money... and without a RTO, they face an insurmountable task to regain their RTO status and make it profitable... more money in legal fees that they don’t have at this point in time. It would just further dilute the equity base resulting in leaser returns from the sale of the land asset, should they realise a sale.

it’s good to divest it rather than pour more good money after bad money. I’d rather see them focus on executing the sale of the land asset.

I wonder if the resignation of Vern Wills has allowed Craig Dawson to get this done and operate in a more rational manner. Seems they should have closed up shop in Australia some time ago.

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Agree with you 100%

After ASQA failed to renew their RTO, their already loss making Aust business suffered low enrolments because of the doubt over their continuity of business. (they were allowed to operate pending the court outcome). After they lost that court case, although nothing was said, it appears they were allowed to continue operating until the appeal was heard. As you say this was going nowhere and burning cash + legal fees.

This company is really a property play now, I hope they can finalise the Clark sale as quickly as they sold their Australian assets. Of course Clark is worth a whole lot more.

SIT Price at posting: 1.9¢ Sentiment: Buy Disclosure: Held
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