Hello again AD1 : )
(I am unexpectedly back to look at AD1 and learn a little more due to the astonishing technical accuracies of ..... well ... him - That One who knows charts ).
.. So for anyone else new around here, here is a bit of sharing stimulated by the new purchase; @Saragian
“...The share sale and purchase agreement provides for the Company’s 100% acquisition of AoM (on a cash free, debt free basis) to be funded by an initial upfront cash payment of approximately $1 million and scrip component of approximately $500,000 of new AD1 shares.
The agreement provides for further cash and scrip based earnouts over two tranches, which will be subject to the achievement of revenue growth targets.
.... Initially it seemed a bit odd that neither timeline nor means of funding was announced in the AoM news, but on doing a bit more reading, I am inclined to agree with @share_time ‘s view :
.. “I wouldn't be surprised to see the Smedleys contribute a large portion of any possible raise considering they were ticketed as a "cornerstone investor" who were to be consulted on any acquisitions and provide consulting etc....my bet is finance has already been taken care off, we will find out soon enough...”
SOME BACKGROUND ;
In the 2020 annual report [see it here], as @RCammo has said, the company said it had made significant progress concluding with a first cashflow positive quarter and news that the way was set for future growth;
.. “The key objective for FY2021 is to build on this foundation and take the business to a position of sustainable profit through accelerated revenue growth. Further enhancing shareholder value through EPS accretive acquisitions is another important focus area for the Company....”
But cash on June 30 was only $459,742.
PREVIOUSLY;
The last raise [here] was completed July 16, 2019 for $1.18M at .015c with the Smedley Family Office doing the bulk of the lifting - originally taking a pot worth $650,000 [ref] in a raise that gained a total $833,000 then adding a further $350,000.
It looks to me as if the share price went immediately UP around this time ?
SMEDLEY FAMILY OFFICE ?
If the Smedley Family Office is related to ‘colourful’ Toorak businessman , Nick Smedley, son of the late Peter ‘Pacman’ Smedley. (Who according to [this useful link ] “ had a fearsome reputation in corporate Australia. From his time running Mayne Nickless, to his acquisitive streak at the helm of Colonial, Peter Smedley is understood to have reaped a fortune well into the tens of millions of dollars during his career”.)
It seems the funding may come from that corner?m
For more on Nicholas Smedley ASX involvement see AFR Rear Window https://www.afr. com/rear-window/stellar-aside-nick-smedley-has-a-new-job-20191031-p5369w
Myriam Robin Steller aside, Nick Smedley has a new job
Oct 31, 2019 – 8.00pm
When making a pitch for membership of a listed board, we suppose it doesn't hurt to demonstrate a little firepower.
Bruce Mathieson-backed asthma treatment company Respiri on Wednesday issued two notices in rapid succession.
The first announced that some Respiri shareholders had requisitioned an extraordinary general meeting to remove two of Respiri's directors (including chairman and Mathieson representative Ross Blair-Holt) and replace both with Nicholas Smedley, the youngest son of the late Melbourne corporate titan Peter Smedley.
Precisely 13 minutes later, the company issued a second announcement, warmly welcoming Smedley to the board. No hard feelings then.
To shareholders, Respiri described Smedley as "an experienced investment banker and M&A adviser of 14 years' experience".
Of course, in recent years, Smedley has usually been referred to as a property developer, though we can understand that not rating a mention in Respiri's release.
Steller Group, the development business he founded with Simon Pitard spectacularly collapsed in July, and the mess is a long way from settled.
Recently, Smedley called in forensic accountants to investigate whether an undisclosed director had misappropriated investor funds from Steller, while in a Victorian Supreme Court affidavit, he suggested some investors had called in underworld figure Mick Gatto to recover their money.
Always a possibility when Melbourne business deals go bad...
But all in a day's work. In August, Smedley was a cornerstone investor in Respiri's latest placement.
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(20min delay)