If finance is with BSP Life, then I would say it would be very favourable. Just being able to make immediate changes to the production line without having to jump hoops and wait for approval from KAP is another huge benefit. Like adding circuit for dehydrated kava, just saying.
More than this than meets the eye, however, as it has come out of nowhere. Another reason is that KAP may need the money, for gearing up their ginger manufacturing. $3m AUD does seem like fair value for everything they are getting. If we look at the cost for next month's upgrades @ $1m AUD, then we can assume that the existing processing replacement value of more than $1.5m. Then we have 3 residential properties, large industrial building with office space and 3000m2 of land, it seems like a great opportunity. I agree that this will be cashflow negative, so does Anthony if he is stating a benefit to the bottom line.
CCO Price at posting:
0.9¢ Sentiment: Buy Disclosure: Held
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