Yep they have pretty much said we need the money it isn't surplus.
They are spending it on the leasehold fit outs etc - which are really worthless other than for selling stock. If you have ever fit out a shop you know how worthless leasehold improvements are when you go to sell the business, or when the mall says you need to spend another $250k doing the same to get a new lease (every renewal usually), or you leave and try sell the fitout - usually you have to pay to have it ripped out so it costs you again.
So I think the cash is far closer to zero than $30m so if I was calculating a value - I would be taking this out.
That leaves a zero net asset business making $8m after fit out costs so its just over 2.5x.
Is that cheap?
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