Lifx is an OK business and it is probably worth more than BUD's current market cap but BUD owes a lot of money and that needs to be taken into account. If BUD was to sell Lifx they would have to repay the debt etc. Current liabilities exceeded current assets by $24.2m as at 30 June 2019. $71m less $24.2m = $46.8m.
Most of the debt is owed to the manufacturer, who in my opinion would be doing whatever they can to help BUD as they would not want to disrupt Lifx's Dec qtr sales. If Lifx has a good Sep qtr and an excellent Dec qtr then BUD may be OK, but I do not know how they will repay the $17.2m due in March 2020. Maybe they are hoping to do a CR at a higher SP in early 2020.
BUD Price at posting:
2.7¢ Sentiment: None Disclosure: Held
