Ann: Trading Halt, page-9

According to the interim financial results, a $12.65 million Top Level debt facility with Macquarie Bank was due to be repaid by July and has a first ranking charge over all the assets of the consolidated group.

Repayment on an existing $1.35 million debt was also due in June.

I think they really need to pull a rabbit out of the hat.
They are getting closer to break even, but without working capital they will be close to trading whilst insolvent and that will place the directors in a difficult position.

Problem is that their loss each quarter is equal to about half their total market cap.

Death spiral.

Shame as there is a lot to like here.

I think much much like when we look at all the major successful toll roads around the world and particularly here in Sydney, the first owners of the asset lose all their money. They fund the development and get the toll road operational, but due to the time it takes for usage rates to cover debt payments they run out of time and money and go bust.

Its usually the second or third owners who make all the money. So in this case, who ever comes in and recapitalizes the business will probably see the profits.

let’s see on Wednesday.

10x