Ann: Quarterly Activities Report & Appendix 4C - 31 March 2021, page-41

Hi all. Been following this one for a while, and am very curious about what's happening.

In DNA's last announcement (30 April), they stated several times that they are "on track to repay all remaining debt with Mega Bank in FY21". The Chairman, Porntat Amatavivadhana, was more specific: "Encouragingly, we are also on track to repay all remaining debt with Mega Bank by this coming 30 June".

At the time these statements were made:

1. DNA had AUD7.9m in cash as of 31 March. The remaining debt to Mega Bank was AUD10.26m.
2. Star Vegas was open for the period from 1-27 April, but has been closed since.
3. Aristo was operating on a limited basis, but had been losing money for at least 6 months.

So it's very difficult to see how they could generate sufficient cash from operations to pay all remaining debt to Mega Bank by 30 June.

So how could they be "on track" to repay the debt? It could be because they had alternative sources of finance locked in. But nothing has been disclosed. Any agreement to issue equity would have to be announced immediately, and nothing has been announced, even now.

Maybe they had an alternative source of debt finance locked in? But there are two problems with this:

1. Section 7.6 of the Appendix 4C says "If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well." Nothing was disclosed here.
2. More fundamentally, if they refinance the Mega Bank loan with another lender, have they really "repaid all remaining debt with Mega Bank by 30 June"?? If you refinance your home loan with a different bank, but still owe the same amount of money, would you tell people that you have "repaid" the loan?