After all of the research you have done plus the responses from Ted i don't know why you are still using the CR term?
Once the debt facility is there that should give us enough cash to grow considerably. Assumption i am making is that we still maintain 40% return. I know that the 0day facility thing Ted is talking about will probably get us a better discount from advertiser.
eg 15Mill USD. Say we can get the money back in 90 days that allows us to reuse it 4 times per year. 1st time becomes 15MillUSD returns 6Mill USD in profit. 2nd Time we use the 21ill USD (15 Mill debt facility plus profit from run 1) gives us back 8.4Mill. 3rd Time we use 15+6+8.4 = 29.5Mill USD which gives back 11.8Mill 4th Time we use 15+6+8.4+ 11.8 = 41.2Mill USD which gives back 16.48Mill USD in profit
I think someone mentioned 15% was the interest rate on the 15Mill which is 2.25 Mill USD interest payable Lets throw 5Mill USD in expenses for EN1 as i think sal said EN1 expenses were about 600K AUD per month.
This assumes that there is enough demand for advertising each quater and that we reinvest 100% of the returns each quater into the next.
So in year 1 if we could fully utillise the debt facility 4 times per year you would get 6+8.4+11.8+16.48 MIll USD profts - 2.25Mill interest payments - 5 Mill USD EN1 running costs.
That gives us 35.43Mill USD in profits which ofcourse can be reinvested into year 2.
I do think that should be atleast enough growth there to satisfy the growth that@Salubrious is looking for.
EN1 Price at posting:
3.6¢ Sentiment: Buy Disclosure: Held
