Administration seem unlikely at the moment but certainly the company has moved into a much higher risk category. Despite some comments the company isnt anywhere near cash flow positive still losing $1.1m last qtr, the improvement was largely on the basis of short term cost cutting due to covid 19 staff reductions, now Karl is on a hiring spree again.
we now also to fund $1m in annual interest cost plus fees and in just 18 months have to start paying back the $10m loan principal (3.5 year term) so repaying $10m over the following 2 years on top of interest.
unless we get strong revenue improvements this year we may struggle to repay this loan and our friendly financiers may end up owning the whole company for just $10m.
if the next update isnt a cracker I'm out, opportunity cost of holding has been to high. Vote against remuneration report and Karl’s loan extension for his company funded share purchases.
LVT Price at posting:
12.0¢ Sentiment: Hold Disclosure: Held
