Ann: March QTR Results, COVID-19 and Withdrawal of Guidance, page-12

I hope so. I actually put the chance at 80%, so my certainty is high, but they could try and scrape by and the Govt support could help but they’re unlikely to qualify for jobkeeper as their revenue growth may not fall by the required amount.

If they try to make it through it’s potentially poor risk management. Better companies than MWR are shoring up their balance sheets and $6m plus $250k in their con note capacity just doesn’t look enough. Remember boards won’t risk getting it too close.

But if they do raise the amount will not be super high and I’m sure they could get a cornerstone investor. Essentially the source of funds will be for stock and growth. Sure it might be at a low amount but it will be blue skies after that. Per my previous note, the downside is somewhat capped vs the upside.

Interesting point you make on their history. I haven’t held this that long so if they have a history of getting by then that’s a positive. Let’s see how it plays out. It’s all there in the numbers for those that want to do the work.