Ann: Trading Halt, page-59

I suspect management would be looking at it slightly differently. If spent correctly this cap raise had the potential to grow the SP north of 50c this financial year.

Possible size of acquisition(s) could be up to $50m if they continue their previous form of 50/50 cash and scrip. Based on $20m cap raise plus, say another $5m from cash reserves provides a total of $25m cash + $25m scrip ($50m total).

$50m / 6 x EBITDA = $8.33m.

$8.33m + $17.8m forecast EBITDA = circa $26m EBITDA

Public Cyber Services firms are typically realising EV's of 25 x EBITDA, so you'd be looking at a market cap of circa $650m (25x650).

$650m/1.2B shares on issue (post raise) = a share price of 54c.

I'd be surprised if this wasn't how management are approaching it.