@InvestorGators you have made 6 posts now on hotcopper in June and all on a stock you dont hold. WHY? What is your agenda?
This is what I believe will transpire. The company hedged their exposure prior to the energy prices going through the roof. As prices soared, they were required by the authority to stump up with funds to guaranteeing the purchases of electricity at current levels. The authorities do not take into account the profits from the hedge account. So on one hand they are sitting on say $20m hedging profits and on the other $10m of funds with the authorities. Now they ask their customers to find cheaper alternatives. As customers leave, they take off their hedge and receive those profits and also get back funds held by the authorities. Now those funds are most likely borrowed money so lets ignore that leg of the equation and assume the loans are repaid. So they will be sitting on say $20m of hedging profits that will flow in over next 12-18 months. They could easily refinance and repay the Blackrock loan based off that cash flow. That would leave the company with the $15m embedded assets and customers and with funds to grow embedded customers. It would also leave them with the $5m loan to the biohub and the option on the crypto miner. The balance sheet would look very healthy and the future cashflows to the P/L statement should see profitability ( assuming significant cost cutting from the move away from retail).
What I believe the delay is caused by, is the complexity of unwinding the hedge and having accurate information to provide to the ASX and investors. However, IMHO, the company has made a great strategic move here. Moving away from retail and focus on embedded customers/ hotwater systems, solar panels and solar farms and biohubs . I see the company cutting costs and allowing the funds from the hedge book to flow in over the next 12-18 months, plus the income from the embedded customers and the 15% interest on the loan, creating a profitable business. The loan with Blackrock will be able to be refinanced/ repaid and the company will finally be on the front foot. And certainly worth a great deal more than the current $8m market cap.
(20min delay)