u r missing the point, page-12

Based on a research report (dated August www.fostock.com.au) who are bullish on the stock and have a 12 month price target of $1.30, their estimated EBITDA of the company is as follows:

2012a 2013e 2014e 2015e
Revenue ($m) 148.6 148.6 154.5 160.7
EBITDA ($m) 13.9 18.6 19.6 20.6

At the above rated of growth (say 5%), I suspect the likely EBITDA will be around 23 - 25. Way off the $50m mark.

I think the company will just chug along, hopefully accumulating cash reserves then come 2018 may actually pay a bit back to shareholders.

Given there is very little chance of making EBITDA, the company is really buying the right to have the uncertainty taken out of the equation by taking out the deferred consideration.

If I was waiting for my deferred consideration I would be happy to get anything North of $1. However there is value for the company in releasing it from the 'uncertainty'.

Throw them $1m and let them take it and run.