Issues for management to address

Governance & Alignment

The two management agreements secured were not declared at the time of announcement to be with the centres Dean and Michelle owned.

Cranbourne is being vended in a near full occupancy – ex growth. At the time of IPO is was 70%. Why was this held back ?

All cash deal for Cranbourne - no equity taken by Dean and Michelle which I read as cash is a better option than equity in MFD

1. Independent experts report failed to mention the loss of income from the management agreement with MFD that will no longer be operative after the sale.
2. No compete clause limited to 5kms - can we assume Dean and Michelle want to leave open the option to buy more centres to vend into MFD for all cash once they build them to full capacity.
3. Question over their St Kilda centre now - is this going to be vended into MFD as well once it reaches full capacity that MFD builds up via the Managed service agreement . There is a conflict as MFD can now put resources to work through the agreement then on near full capacity vend into MFD.