RCL 4.76% 11.0¢ readcloud limited

Ann: RCL announces key acquisition to drive growth in VET market, page-8

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  1. 6,159 Posts.
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    So everybody thinks this is a positive, but nobody wanted to buy today based on it? Not considered good enough to make people rush to buy?

    I didn't buy more, since I am already overweight. I still like the news.

    Is $220k initial EDIBTA enough to move the needle?

    I guess logically, those sort of numbers can only really move the SP by about $0.02 (or $2m market cap worth, about 6% vs today's SP). But if it pushed them over the line to reliably cashflow positive, then it also de-risks the entire business, potentially reducing the discount rate / bringing in more investors with lower risk tolerance.

    The $1-1.5m price tag seems affordable. The presentation said there are 15m options outstanding, which could bring in $4.5m of extra funds, as long as the SP stays above $0.30 after the quarterly.

    I would not even be surprised to see another acquisition. Then do have the money for it, as long as it doesn't over-complicate the management of the business.
 
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