Ann: NNG Loan Facility Agreement, page-10

I think what they see value in is the huge fees they get paid ie the establishment fees of 3.3% and a non-utilisation fee of 3%+BBSW ie ~7% whether you draw on the $4m or not. Correct me if I am wrong but NNG is on the hook for fees of close to $400k before the Company even starts paying interest - at a punchy ~14-15% p.a. The EBITDA of the acquired businesses barely equaled that! Plus the warrants which at current market cap levels represents a pretty decent chunk of the Company.

An acquisition led growth strategy only works when there is an arbitrage available ie NNG uses its high valuation multiple stock to buy companies on a lower multiple and then have the market mark those earnings up on to NNG's higher multiple and the virtuous cycle goes on. Its a well trodden path
How on earth can it work, without injecting huge financial risk into the business, when you buy companies, using debt, that are more expensive than your own and generate barely double digit EBITDA margins.

Why cant the Company juts generate organic growth?