re: Ann: ASX Circular - Reinstatement to Offi...
After reading the Prospectus & Pre-Quotation Statements there are a few things I don't understand. AYB hold options to buy A) Birdwood 1, 1,556 ha valued at $7.1m or $4585/ha (including water entitlements) AND B) Carmarthan, which is 534ha and valued at $2m or $3745/ha (including water entitlements): - Given AYB's stated preference to execute on both these deals, how do AYB propose to fund these acquisitions, particularly as the Birdwood 1 option expires 31 Dec 2012 and its share price has been smashed? - AYB's existing owned properties & water entitlements are valued at $11.5m for 3,146ha or $3,655/ha. So why is the neighboring property of Birdwood 1 valued at a 25% premium to AYB's existing properties?
Also, according to the Prospectus & Pre-Quotation Statements, AYB does not yet own any sheep in its own right. All it does currently is agist sheep for the South Australian Company or "manage sheep" on behalf of the directors as per the very generous terms (for the directors) detailed in section 10.6 of the Prospectus. Am I missing something or is this being set up as the Allco Finance of Aust Agriculture?
PDF Price at posting:
8.0¢ Sentiment: None Disclosure: Not Held
