Ann: Update on Sargon receivable, page-10

Are we not being a bit harsh? We are all disappointed with the fact it won't settle. We now have more security.

We have security: "The Deferred purchase price was secured under a general security deed provided by a Sargon company and
will now also be secured by certain liquid assets, registered on the Personal Property Securities Register."

$206K per month has to arrive otherwise its a default.

Sargon are done and dusted in Australia and NZ if this fails. Not going to get this to fly unless it all comes together and they keep growing - The liquid security sounds good to me. We have $12 million in the bank and a repayment schedule - The business is probably larger and we would be first in the queue to get it and more back if this fails.

Yes, it's not a clean deal but it was a great price.

Do I think management did a good deal - I think they were naive - There has been a lot of comment around the Sargon attempt to do its IPO and then its CD. Really looking at all of this a lot of IPO's are not getting off the ground - I would consider the whole wealth management arena to be the most difficult. How do you predict the changes in ASIC and APRA in regards to Financial services companies will be and what the new cost of compliance will be? Management knew when it sold the business that this industry was in a state of disruption - they say they are even part of that disruption. - They should have got more secure terms at the outset. I am not buying banks or adding to my positions here given the change. The real issue for me is whether there is enough cash to do acquisitions or grow the business. I think there probably is with the $12 million in the bank.

We can all shout and scream but its probably a reasonable outcome until the end of May 2020.