The objective isn't to be debt free, it is to minimize dilution...

The objective isn't to be debt free, it is to minimize dilution to shareholders whilst trying to get to a debt level which is palatable for commercial lenders at a reduced % rate. A fine balancing act.

That has always been the goal, unfortunately the market moved against them.

From a corporate finance 101 perspective, debt reduces wacoc and is generally beneficial to a business.

Theory aside, practically speaking debt keeps management on their toes and getting into bed with commercial lenders now would build lending relationships and keep them warm for any future expansion optionality.
If that ends up being the case, draft the facility agreement with a built in stage 2 accordion facility.

North of Aud150m is a big ask, plus potentially a retail rights issue to thank them for their ongoing support and allow them to negate the dilution from instos.

Underwriting a cap raise that big won't be cheap, either the fees will be high or the price will be set at a level where the underwriter is very comfortable they can get the issuance away. Always a conflict, the underwriter prefers a lower cr price and issuer prefers a higher one. I am thinking something starting with a 3 here for a 150m+ cr.

Aimo