re: Ann: DGI Signs Option to Purchase Online ...
Still in two minds about this- the operation looks quite small as it is now (based on the proposed performance hurdles which are low imo) but it's apparently easily scalable, the EBITDA is 50% of revenue and the Aussie government are involved, plus the potential market seems quite massive. There's plenty of large online education providers over on the NASDAQ with market caps upwards of $500m. The question is how quickly can icollege.net grow to a decent EBIT and is it's platform good enough to gain traction in Australia and/or market share overseas? Various articles talk about the future of learning shifting to online/virtual cloud-based education, so it's a good space to be in imo.
Just not sure about the proposed capital structure as there'll eventually be a lot of shares on issue. Poor existing DGI holders have already gone through a restructuring in 2012. It seems the majority of new shares would go to icollege. The $2.5m prospectus raise would be at a price yet to be determined I guess?
I did a google search and came across some interesting info on icollege- what appears to be a rough version of their own presentation they would've used recently!:
