Ann: Launch of Accelerated Non-Renounceable Entitlements Offer, page-3

@jamwolf

I'm zigging while you're zagging - the equity raise prompted me to reassess RDF (i've looked at it on and off for about two years) and i've started building a small position.

RDF needed to do that equity raise - it's a business that can't grow (i.e. bid for new contracts) without capital, and the Chicago $US10m payment this year (in addition to elevated one-off expenses incurred) drained their cash. Their $10m existing debt facility is basically useless (has to be paid down to 0 every quarter) so the business was ultimately forced to raise equity.

After 5 years of mostly self-inflicted misery, i think the wheel is at long last about to turn for RDF. The most important additional thing for them to do in the near term is source a new debt facility which provides them the capital to execute on their pipeline - unsurprisingly given their history, they're finding it very difficult to raise debt.