Management has borrowed $23.5 million at 9% pa interest.
”Group’s financing facilities as at 30 June 2020 were $23.5 million, comprising Tranche A $15 million that has been drawdown in full and Tranche B of $8.5 million drawn down by $4.861 million. Tranche B includes $3.5 million limit exclusively for capitalised interest, if any. The term of the facility is for three years from the date of the first drawdown, 16 August 2019”
They appear to keep borrowing to push the debt out from the current year, and last time paying 9% interest. This time they appear to have been forced to sell assets before the $19.4million owed from the time of the last annual report becomes a current debt (I’m no accountant so this is an assumption)
What worries me is, with sales of 80-90million, they still don’t have operating cash to pay down debt without selling assets. Having said that, I think it’s a good move to free up the capital and get back to, hopefully, being debt free.
FRM Price at posting:
38.5¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)