@cashman2284 If the early payments didnt have to happen ADO would be .06¢ plus IMO
The DIAsource business looks to be making $5mill cashflow a year and growing. ADO hasnt see this because they have been paying off the $10m earnout payments from cashflow. We are nearly there. Diasource is the perfect acquisition and the price paid looks like a bargain now we can see the cash flowing in.
I hope they dont sell any DIAsource but issue them shares, get bank loan for working capital, do a capital raising with options for all or licence some of the IP off .
lets see how this may work .
Lets say we need $1o million ( guessing )
Bank loan/facility $5mill
Raise $5m now at .025 with 1 for 5 free options at .035 as an incentive or reward (200m shares+40m ops)
Issue Vendors $3m @ .025 with same options deal (120m shares+24m ops)
Use the cash incoming to pay it down ($1.5m) guessing !
This combination would give ADO $13.5m with $2.2m from options
ADO Price at posting:
2.1¢ Sentiment: Buy Disclosure: Held
