Another poor result, very unfortunate IMO.
The Blackrock funding cost was 6% of $15m fee to the broker (?) who organised it on top of the interest of 10% p.a. - I think - may be worth checking with records or the company to be sure - but I think it is well known...
Assuming they are happy to pay the broker again 6% to replace the $15m (plus any other money), there is another $900,000 to go out (my guess is before March 31st or June 30th, as discussions are well advanced...). With 9 months to go, they are testing the "can pay bills as and when they are due" ($15m) - so presumably are quite confident fo refinance.... - They may get terms for the likely fee / or broker offers free replacement ??
Unfortunately, hard to see way out of trading to profit other than CR to support losses - but at what discount? with SP at 11c would be hard to put more money in. Perhaps the finance broker could take fee as stock to alleviate this issue? (say) $960,000 at 10cps would be 9.6m shares (the broker would then have 10% of the company...) - so may not be the desired route.
I still think interest (at 10% or 16%) on $15m is really a COGS (i.e. before gross margin) not a financing cost - as it is an intrinsic part of the product being sold - but accept that is not the accounting standard - so unlikely to happen - I just don't like EBITDA or EBIT being used as a reference point where so much debt and interest is involved in the business performance.
In the old days (pre AASB16 Leases) EBITDA gave a indication for Pre Capex Cash Flow, which is why the market liked and used it - here those measures are not great measures of business performance because there is so much interest involved in generating revenue - JMO
I hope LPE can pull a rabbit out of a hat and do well from here - I like the sector - but this one is not for me
(I bought/sold at 23c for breakeven, waiting for news/results to get back in - not going to happen yet on this announcement.....)
Note EAX averted problems with Banking but Directors put in $1.5m (with $1m to CBA) and terms softened for 12 months before reverting again to current...
I like the sector - it should be good - but it is not easy.... no doubt the best businesses have great Management and Boards
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Another poor result, very unfortunate IMO.The Blackrock funding...
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Last
12.0¢ |
Change
0.005(4.35%) |
Mkt cap ! $21.62M |
Open | High | Low | Value | Volume |
11.5¢ | 12.0¢ | 11.5¢ | $42.79K | 371.7K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 17391 | 11.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
12.0¢ | 243126 | 4 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 17391 | 0.115 |
7 | 2450000 | 0.110 |
4 | 130000000 | 0.105 |
1 | 15000000 | 0.100 |
1 | 100000 | 0.092 |
Price($) | Vol. | No. |
---|---|---|
0.120 | 243126 | 4 |
0.125 | 402687 | 3 |
0.130 | 926734 | 7 |
0.135 | 342500 | 3 |
0.140 | 294111 | 2 |
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