Ericsson...thanks for the welcome to the crab pot. I don't like...

Ericsson...thanks for the welcome to the crab pot.

I don't like the convertible bonds issue either, and if it was contractually possible, my preference would be for management to pay them off rather than let the holders convert. I am not sure why the bond holders would allow this to happen though, given they can convert the debt to shares at 49c. My thinking is that if BRL can pay back the bonds early, they should, as finance will now be available on better terms as the LMCH court case is out of the way and cashflows are looking much better. If bond holders do convert, it is not great but not the end of the world as we get A$10m of debt converted to equity, albeit at a discount to the current share price. If the debt is converted to equity then that is A$10m more available for investment/dividends/buy backs. Either way it will get resolved by August 2022 at the latest and should draw a line under future share dilution.

Liquidity is definitely an issue, but it works both ways - i.e. the BRL share price moves very quickly in both directions. I am hoping at some point, as it has in the past, it will work to our advantage. There is that spark of optimism again...