There's one other piece of the puzzle here that could make this transaction extremely favourable...
Certainly no guarantees here, but what we know is that the largest shareholder, Bergen (US Fund), had reached the end of their time horizon on HLF (4 years) and started selling down a small amount into the market late last year. If they continue with ongoing selling that would no doubt put further pressure on the share price...
Yet, this CR & material acquisition actually provides an avenue for a block trade to be undertaken to remove Bergen from the register and replace them with another cornerstone shareholder who sees the potential here. That would be a massive win for the company and the register.
At the end of the day, I don't see this as likely to be materially dilutive to shareholders. HLF is on the cusp of profitability, so this will be a raise purely to fund the acquisition, not for working capital purposes.
A2M has 723M shares on issue, BUB has 650M shares on issue and Halo has only 274M shares on issue.
A raise at 10c, for say $6M AUD would contribute only 60M further units, to take the tally to 334M SOI. Back at 13c that is a new market cap of $43M, which is still extraordinarily undervalued (and we get the bonus of whatever is acquired)
If there is a share purchase plan (SPP), I will be participating.
