Tomorrow, page-27

I agree that the expenses of the acquisition will bear close examination. Some of these will have been captured in Q3 and the remainder in Q4.

From a pure flows perspective however the $11m primary cost will likely have been accounted for on the following basis (more likely to be reflected in Q4 cashflows):

1. Deposit of $1m paid from cash balances in Q2.

2. Loyalty Options of >$6.5m mostly received in Q3 but just remains to be seen as to whether the Loyalty shortfall was captured in Q3 or more likely Q4 (due to the shortfall settling on 8/4).

3. New banking facilities in place of $10m plus the existing amount o/s so $11m overall.

4. Operating cashflow surplus of $800k - $1.2m for Q3 including some decent livestock sales. Herd size however (net of this) at around 2800. Earlier, I had been thinking of 3000 including sales of 200 - 300 but if the herd numbers are instead at 2800 then this would suggest sales of 400 - 500. If so then the amounts generated here would be sizeable.

5. Reduced CAPEX impacts for the quarter with most CAPEX already substantially completed or funded in relation to the existing farms.

I would have thought however that the remaining $10m in primary acquisition cost would come from debt (+$4m) leaving $6m oin available capacity, and loyalty options of $6m (leaving increased cash of $500k).

With DecQ cash if $1.4m, then this could suggest post settlement cash of 1.4 + 0.5 + 1.0 (midpoint on operating cashflow) less acquisition /adjustment costs less any Q3 CAPEX. Net of all this however would put post settlement cash at upwards of $2m plus $6m in banking capacity. That's about where I'm presently estimating the figures and the available capacity /funding resources (at the moment).

On this basis, net debt would be about $2m post acquisition ignoring however the convertible notes.