Sure
Quote from Tommy on STrader
I'm not 100% on all this, as seems complex to me.
Page 22 of the FY pdf (page 19 of the report) has the deferred settlement obligations listed. Total $18.4m to be made in either cash or shares immediately after 31 October - if cash, I think the agreement is that they sell shares to fund.
On top of that, there are also agreements to purchase the remaining shares in each entity. These are based on an earn-out formula that depends on performance over the 3-5 years following initial payment. Page 37 of the prospectus pdf has more details. It seems from announcements of subsequent acquisitions that similar processes apply to most of them.
If the overhang of shares to be issued gets too large, it could create a spiral in the share price - either up or down as future dilution and value per share becomes a function of price.
any news, page-9
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Last
1.1¢ |
Change
0.002(22.2%) |
Mkt cap ! $20.36M | |||
| Open | High | Low | Value | Volume |
| 0.9¢ | 1.1¢ | 0.9¢ | $29.57K | 3.008M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 11 | 2890665 | 0.9¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 1.1¢ | 634395 | 3 |
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| BLU (ASX) Chart |