Certainly is an indictment on the market with the current value they give us. Well at least with this raising that is being arranged by Better Beer Co and not MCL and the announced restructure this will give us a better idea of what Better Beer is worth. For example if the raise for Better Beer values Better Beer at say $150m then we can record in our Assets, a value on the investment of Better Beer as $50m (our 33% share) which is about our MC now. Then the market either says we don't value any of the rest of the business, or the true value is applied and we rerate. Also it will make it easier if MCL want to ever sell their investment in Better Beer. The good thing is we have plenty of carry forward losses as we can treat this as an operating profit and not a capital profit which can only be offset by capital losses.
MCL Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
