DW8 Growth, page-9593

The class A rights expire later this year (end of Nov if I recall correctly) while class B have another 2 years and as the annual report indicates the fundamental requirements of both classes are expected to be achieved, even without the recent PWD acquisition imo. The most recent 2Q revenue figure exceeded $1 million and from that point there were approximately 5 months left to reach the $1.25 million revenue threshold for a rolling 3 month period target, which the firm will surely achieve before end of the class A rights deadline -- and that's without PWD contribution -- considering this overlaps with the busiest time a year for liquor sales (on top of the avg growth of cases). Even if one discounts historical growth rates somewhat to account for a higher base case it is very likely that class B revenue requirements would be accomplished well ahead of the end of 2023 deadline, excl. PWD revenue contribution. Once we add PWD revenue both targets would be hit sooner, though I think it's important to note we would have reached the revenue targets even without that last acquisition. Dean earned his shares and I would like to see him even more aligned with shareholders to ensure shareholder interest/value gets maximized to the fullest.

I don't believe there are fundament or valuation concerns that would see the SP correct down to $0.015 as at that level the firm would be trading at a substantial discount to even pure play logistics firms globally, which simply doesn't make any sense from a business composition and growth perspective. The outlier or black swan event would be a complete global market meltdown inducing such a risk off view that everyone is sprinting for the doors selling assets indiscriminately. And even if that was to happen, which I don't believe in the current environment, then I believe we would be hard pressed to breach that level due to the substantial SP correction we have already experienced. If the SP was to get even remotely close to that level I know a bunch of guys who'll remortgage their homes to double their existing chunky allocations to take advantage of a unique opportunity. All things considered both class A and B requirements should be considered a shoe in.