This is my issue with this cr.
Below is from the ann for the loop acquisition
The consideration for the acquisition of Loop Secure will be a mix of cash and TNT shares, being
$9M in cash, and 15.9M shares at a 14-day VWAP of $0.28. The cash component is paid $7M on
completion with the balance paid out over 12 months which will be funded from existing cash
reserves together with the earlier announced (16 March 2021) Pure Finance facility.
Why not issue shares for the entire purchase at 28c if shares were to be needed to be issued to raise the cash anyway.
Also
Below is from the ann for the airloom acquisition
The acquisition is fully funded through Tesserent’s Acquisition Debt Funding Facility with PURE Asset Management
(announced 20 July 2020). The consideration for the acquisition of Airloom is a mix of cash and TNT shares, being
$6M cash and 40M shares, issued at a 30-day VWAP, subject to any necessary shareholder or other regulatory
approval. The cash payment will be split over two payments, with $5M payable on completion and $1M upon
achieving agreed key financial milestones.
And this from the recent prelim annual
On 11 September 2020, TNT Cyber Services Pty Ltd, a subsidiary of Tesserent Limited, acquired 100% of the
ordinary shares of Airloom Holdings Pty Ltd for consideration of $23,184,758, with $12,298,323 cash and
$10,886,435 in issued share capital, being 39,950,221 shares issued at fair value of $0.2725 per share.
The cash consideration has been split, with $7.50 million paid on completion and $1 million payable 12 months
after completion upon achievement of set milestones. Total consideration for the acquisition also includes $3.8m
in estimated earnout payments based upon forecast performance of the business.
For starters why has the cash consideration doubled and again shares issued at 27c why not issue all shares as now we have part paid with shares at 21c.
Disappointed with the cr only thing remotely promising is 11mil for acquisitions and that TNT is cashflow positive now so there really shouldn't be any cr in the future. I have no issues with the dilution to achieve rapid expansion but offering part cash and part script then performing a cr to provide the cash at lower than script issue is pretty bs as far as i'm concerned. The fy guidance will need to blow my socks off
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