re: Ann: Acquisition of Synergy Plus and S Ce...
The deal very much looks like a backdoor listing by S Central using the ComputerCorp "shell".
Combining the news regarding ComputerCorp's revenue decline in recent months in their largest markets (WA & ACT ) and the cash burn evidenced in the first half FY results then it's pretty obvious something had to be done quickly to turn the ship around.
The issue of extra shares is going to further dilute shareholder equity, but that is better tban the alternative.
With the aquisitions carried out last year, probably more than 1/2 the company is "new", it will be a challenge for management to succesfully integrate the businesses at a time when there are also plenty of external market pressures to deal with.
CZP Price at posting:
3.2¢ Sentiment: None Disclosure: Not Held
