It looks to me like they would have be wanting to reduce debt by...

It looks to me like they would have be wanting to reduce debt by at least $10m to appease the bankers on interest cover - in a cap raising, that would be doubling of the no. shares on issue which hardly seems viable, even if it could be underwritten.

The alternative is usually a sale of assets.

The EBITDA figure looks to me equivalent to around $2.1m NPAT, so that's a forward P/E of about 6.3 before any balance sheet restructuring.

Overall, I think there are other companies around here on similar forward P/E's that don't have the same level of risk attached.

As an investment, LGD only makes sense if they can manage to squeeze a little more margin out of the business - another 1-2% would make enough difference!