Wow .. some discussion going on! We have been starved of news...

Wow .. some discussion going on!

We have been starved of news flow for a while and I feel like we are trying to take more out of the announcement than what we should or can.

The heading says it all, "reduce interest exp (a little, not a lot - blended interest rate is just over 10%) and improve working capital". Apart from confirming earn out was paid and trading is in line with Q3, there is not much more we should be taking from it.

We need a little perspective here.
I think everyone can agree, the acquisition of Track was aggressive. Very aggressive.

For a company the size of Crowd, we had some pretty aggressive short term earn out payments that needed to be met.
With a MCAP of $25-$30m, they needed to pay $6.8m in earn out payments. Management could have diluted shareholders further and raised additional capital initially for the $6.8m. Seems like they took the harder road and went it alone so they could keep hold of as big a piece of the company as possible. Instead, what they have done is proved that even through integration and expansion, the company is still spinning enough free cash to pay $6.8m in 10 months. Short term pain for long term gain maybe?

For me, management have been true to what they said they would do at the last AGM, with varying degrees of success.
They are integrating track
They managed short term debt requirements and working capital
Expanded markets with Q&A - thailand and colombia to go online soon.
Position themselves to start aggressively paying down debt in FY17

We now enter FY17 with short term debt sorted and a good chunk of cash ready to go to work.

This is absolutely a high risk play. I have invested in microcap/high risk companies before, but never any which were generating so much free cash flow.

All in my opinion.
GLAH