like sdj I think the vote will be yes, so will be interesting to see how it will pan out and who stays or goes!!!
as jrslim posted yesterday,
"The proposal to acquire NS has always been a means to and end AFAIK. The board is essentially purchasing a cashflow (the debate on whether it’s a good deal or not notwithstanding, it’s an existing cashflow) to bankroll obj tech related endeavours both current and future. This seems obvious to me."
the future to me is to give reduit as much chance as possible to succeed, this will be the making or breaking of wellfully. this is what I hope it allows management to do. if reduit and hairpods is a success, that will be the star of the wellfully brand and give a lead in of future brands such as skin pods and surface cleaning. thats our future and chance of success!!!
here are some figures from asx announcements and releases as well.
purchase price $85m
less $12m valued property $73m (allows us to to a $20m loan to reduce existing s/h dilution)
"A: The Company expects to fund the payment from operating cashflow, in addition to surplus funds from the capital raise and debt facility. Furthermore, OBJ is (as part of the transaction) acquiring fresh (in-date) inventory and net Accounts Receivable totaling approx. $23m.The exact amount will be calculated at settlement but it is expected that net Accounts Receivable over Accounts Payable at settlement will be in the order of approx. $7 million, which is expected to be a direct cashflow into the company shortly after completion."
less $7m net account receivable = $66m
less fresh (in-date) inventory $16m = $50m
for the final $15m share payment
"* Performance based earn-out requires average EBIT for FY20 and FY21 to be greater than $11.7m for the vendor to achieve the full payment of $15m. If average EBIT for FY20 and FY21 is below $7.2m no performance equity is issued."
so if NS hits $11.7m EBIT the goodwill will be $50m, if it is below $7.2m it will be reduced to $35m. people may argue about the above figures but they are in written releases. I don't understand why people keep trotting out the deal is $85m, without adding some of what we benefit from it as well ???
lets hope that tomorrow is a good day for the rose coloured, easy lead, below the bell curve supporters like me.
(20min delay)