No thats not correct. EBITDA is low but has reason to be low. Restructure of UK is happening, 700+ staff got the bullet, centre of excellence etc, cash bleed nearly stopped. SGH running on a finely balanced budgeted system because no more headroom in debt or cash in bank, so as more funds are recieved from cases they can decide where, when and how much to spend in certain areas, be it advertising etc, this will keep their heads above water for the time being. If H1 can produce cashflow and/or decent EBITDA the dilution will be less than if you worked it out today. The point is, if the company had more cash reserves it has a better chance of survival, Time is not on the side of SGH, loans need to be renewed and this is the pressure, underlying business has some merit but not with stupid amount of debt, so Anchorage etc understand this, they pay 38 cents for the debt, and will get a discount if debt for equity swap happens, this gives SGH more headroom cash so the company can operate properly and Anchorage will have the shares in a company that is less cash strapped.
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