1) Blue Diamond Settlement at US$35m is 119% higher than US$16m...

1) Blue Diamond Settlement at US$35m is 119% higher than US$16m (Note 33: Financial Report ASX 30-Aug)
2) Sale of AFMH AT $25m (vs book value $22.7m Financial Report Note 14)
Negatives
Shocker settlement - USD19m more than 'worst case'
Tranche#2 issuance of debt $26m (USD18m) convertible at 46cts. Better deal than Tranche#1 at 70cts. Sale of AFMH needed to build cash reserve for bank guarantee for BD settlement.
Positives
1) Uncertainty cleared. More plant-based product & channel development now possible. Dare anyone think of an IPO option of MILKLAB?
2) Litigation is expensive. FNP expensed $6m in legal fees 2H21. Presumably most of it was legal fees in AU courts to (unsuccessfully) try to stop the disputes to be referred to arbitration in California. Imagine the cost if it proceeded to arbitrate in the US. (BD got us and the Perichs by the b#@s in litigation-happy USA)
3) Disposal of AFMH - Perhaps FNP had legacy agreements with locked milk prices with AFMH. Management asserts it will be operating cashflow positive 2H22. Disposing AFMH helps. (The idea of a vertical integrated company 'farm to plate' company is absurd. Management as well investors of FMCG should not be worrying about floods, drought and pest, etc) Interestingly sale of AFMH was not part of its Reset - keep it simple strategy.