Using the total debt reported today, you seemed to assume 10% interest rate. This is way high and not even closer to the reality. Many financial institutions will happily refinance this for a half of that rate. Interest rate these rate is quite low these days ( 1-3%). Handling 20 to 30 interest payments will not be an issue for $1 billion revenue making company ( As Mel says $180 million profit making company by next year).
By the way, have you seen change of tune by AFR and other media. They also responsible for the plight of the SP today, but now telling shorting is no longer a one way trip. I saw another article with the headline" Slater and Gordon Reduce the loss". AFR article today says that some of the best performing stocks in 2016 are the most shorted ones in 2015. Interestingly this was mentioned when they discuss SGH although SGH has not performed that well so far. Are they foretelling something? IMO, after full report next week, sophisticated investors will start buying again. According to my calculation, this is the last week that you can buy SGH shares for less than 60 cents.
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RECCE PHARMACEUTICALS LTD
James Graham / Dr Alan Dunton, MD & CEO / Non-Executive Director
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