* AASB 16 - You may be comfortable though surely you can see that IPO shareholders may be upset about it, nd that is to whom your original post was directed at."
AASB16 was adopted from 1 April, 2019, almost 2 years ago, and it was well-flagged in the media and in various company announcement for a good 6-12 months prior that companies would be moving to bring leases onto the balance sheet.
If IPO shareholders were upset about it, they had ample time to demonstrate their disaffection by selling out at share prices triple their current level.
"It is also unlikely in the year of Omniblend and Supercubes acquisitions the average SH would have been aware the impact."
Nonsense.
The details of the Performance Shares in relation to both Omniblend and Super Cube were expressly stated when those acquisitions were announced.
* Incentivising CRs - Omniblend acquired AusConfec (assets only) and its revenue/EBITDA is now included in Omniblend's. Any KTD entity can acquire another entity. To quote C. Munger "Show me the incentive and I'll show you the outcome"
* 1/3rd call on future prospects - the performance of the company needs to be that great for the revenue and EBITDA hurdles to be met, e.g. $7.5m EBITDA & $100m revenue on 400m shares on a multiple of 1.0-1.5 is a PS of $0.25 - 0.375. Good though hardly "sensational".
$7.5m EBITDA & $100m revenue would just relate to Omniblend; what about the Revenue and EBITDA contributions that would arise from Keytone NZ and Super Cube?
To get 100% vesting of all Performance Shares, Keytone NZ would be needing to be generating $6m in EBITDA (See Class B Perf. Shares) and Omniblend/Super Cube would be generating $5m EBITDA (See Class H Perf. Shares).
Meaning the KTD Group would be on more than $18.5m EBITDA at that point.
With all the Performance Shares vested, that would result in 376m shares on issue, and based on your $0.25 to $0.375 price range, would imply a Market Cap of $95m to $140m.
So, an implied EBITDA multiple between a mere 4.6x and 7.0x.
Finally, it's not just Revenue and EBITDA milestones that cause vesting.
46.5m of the 103m unvested Performance Shares have pretty lofty share price milestones, of
>$0.65 and
>$1.00, respectively:
View attachment 2988797
So they can try to ram as much acquired Revenue and EBITDA into Omniblend as they like, but if it isn't done in a sufficiently share price-accretive manner the stock doesn't vest.
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