Ann: Share Placement to JFE Shoji Corporation, page-8

This is not surprising at all and I welcome it because the BS at June 2023 contains some real concerns. Specifically our net debt was $229m USD against equity of $408m - that's 56% which imo is too high, particularly when you throw in a deficiency between receivables and payables of around a further $95m which add to the short term problem.

Specifically, we have to roll over or retire $127m USD by June 30 2024 and the build up in inventories in the 6mths to June 2023 by a whopping $50m doesn't help much at all! Throw in the fact that payables due inside 12 months were $128m far outstripping receivables of $33m and Houston, we have a potential problem.
So it doesn't surprise me that OMH is stripping away at surplus assets such as Qinzhou and doing a soft 'inhouse' share raise.
But these two will only raise $33m USD, and we've got some $60m in cash (which lets face it is probably required for WC in any event), so our best hope is in paring back the inventory by that $50m build up and maybe rolling the $127m back into a loan around the $50m mark (loan of $127m less the $33m and say $50m = debt to roll over of $44m)

I am sure that financiers would be agitating for a debt reduction given our massive spike when completing the 25% acquisition last year. Do the above and our net debt ratio will come back to something like 38% - more manageable!

For those who have been agitating for a share buy back, I'd suggest we need to get our debt levels under control first.
I for one will be watching the CY23 results like a hawk.