A CR does not look likely in the short term as $9.5m looks to be enough depending on how much they burn through before the overseas businesses become profitable. The acquisitions and future earn-outs will burn through a fair bit of their cash, possibly $5m-$9m ? but cash flow from the business should cover most of this:
Vizmond Media: $2.5m plus and additional earn-outs of $3.5 over three years (through to 2018)
CLIPP: $3.5m convertible note - quarterly drawdown over 18 months
The Performance Factory: earn-outs of $4m over two years (through to 2017)
Eggmobi: not sure on the amount of the earn-outs ?
In FY15, the operating cash flow paid for most of the cost of the acquisitions, but cash did decrease, the same may happen this FY:
MBE Price at posting:
25.5¢ Sentiment: Hold Disclosure: Held
