ALC 1.27% 8.0¢ alcidion group limited

Ann: Alcidion to acquire MKM Health and Patientrack, page-91

  1. 3,661 Posts.
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    A couple of takeaways from the acquisition ann. i hope those with a background might be able to elaborate on;
    1. The contingent consideration  of "...up to $4m...subject to the revenue and EBITDA performance..." seems a little generalised to me? What might the performance indicators be that determine the granting (or not) of these deemed shares?
    2. Is there concern the 80million shares that may add themselves in 12mths time (at $0.0505) will cause SP pressure then, and disincline investors from taking a position leading into the issue? And bearing in mind no mention of a voluntary escrow period for that volume.
    3. Is there concern around the 20% of issue not escrowed in the first tranche? Might 40m new unescrowed new shares be seen as a deterrent, particularly in light of our recent low turnovers.
    4. Regarding that small volume of "ineligble sellers", ALC have optioned either to pay sellers their 5.05c, or arrange for them to be sold "on market". Given that equates to another outlay of between $140 - $700k, and therefore unlikely to be affordable at this point in time, does that put a 3rd deterrent in front of investors fearing further downward SP pressure?
    I think i understand how this acquisition is seen as "transformative" for us, allowing us a more diversified and complemented suite of products. It seems to me to be a defining moment in our brief and challenging history, and confirms the we are actively pursuing our oft proclaimed modus operandi around M & A.

    Just trying to clear my head of the confusion around why our market hasn't (yet) adopted what, on the surface, seems to be a game changer for us.

    I added more at 3.8c yesterday because i believe our base has someways been set. Not at the 5.05c so much, but by using that as a point of reference for investment decisions over the next 12-18mths.

    GLA
 
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