Current debt is stated as around $6.5m and on the existing claimed revenue I am not sure I want the debt increased either given their current debt is through fairly conventional bank instruments.
They could have raised all the capital needed ($17.5m) at 22.5 cents and made the process very simple and then left the door open for a further capital raising inside 12 months across all shareholders in the future by way of another rights (plus possible options) issue. The latest capital raising approach has isolated many current shareholders and leaves open the door of mistrust of the Directors and with over 60% of their shareholders being retail it wasn't the smartest move and may well come back to bite them at the next AGM.
I note also in the presentation there is a comment about being able to engage 457 visa applicants and I am surprised that a discussion hasn't started about this given Linear Capital considered the training school for 457 visa applicants as well and got a bit of coverage and a negative community response.
At this point it is perhaps best they consolidate what they have acquired and pursue the stated production targets so to prove up the model and verify a cash-flow positive business approach. Once this is done then they can go for next round of acquisitions, there is time.
Besides my negative reaction to the latest round of announcements AHF is still in a reasonably good position and unique in the market at this point and marking the share price down this far I think is probably a bit tough, 22.5 - 23 cents maybe. It will be interesting to see who crops up on their register in coming weeks and where the share price goes in the short term.
