Even if LKO didn't have legal issues ongoing, I would have...

Even if LKO didn't have legal issues ongoing, I would have thought you would still risk-adjust the value of LKO. As DHR own more than 1/3 of LKO, it should be considered an illiquid investment imo. They cannot liquidate the $28m without it being done over a substantial period of time and at a significant discount to the current 0.3c share price - we all know what happens to a stock when a significant holder unloads on-market over time.

So, if even just for consideration purposes, you could argue that the EV calc could look more like:

$39.4m DHR market cap, post raise
($1m) Cash at 31/3/18
($4m) Cap raise proceeds
($27.8m) LKO investment
$13.9m LKO liquidity-adjustment, say 50%
$20.5m EV

Not saying that this is necessarily accurate, but just that I think it is quite a bit off the mark that the value of the LKO investment would be $28m.

Cheers