For the $15m to be financed out of cashflow by 31/12, then the...

For the $15m to be financed out of cashflow by 31/12, then the revenue implications, based on Yanlin's view of 40% gross (not net) margins being achieved, would require >$37.5m in billed (and collected) revenue.

There is simply no way in which ATC can self-finance the acquisition unless of course it diverts FNT revenue back into the purchase price.

Extreme dilution of current shareholdings is, therefore, most likely.

Based on an ~30% discount to the recent average trading price of 18.5c, then that would translate to an effective 13c issue price (ie: requiring ~115m new shares to be issued, plus the 40m first tranche, vendor shares).

Given the 116m shares currently on issue, that would take the new, enlarged issue to >270m shares.

For this to occur, control is clearly going to pass, either:
1)
to FNT /the Vendors; and /or
2)
those to whom the share placement will need to be made.

If, however, ATC pursues a rights issue, it is likely to end up under-subscribed unless couched at an even steeper discount.

This may not end up being the case though if the issue is under-written. But, by whom? That will be the next imponderable.

And, what of the $750,000 short-term Convertible Note raising (which Yanlin alluded to on Tuesday) and was confirmed, tonight?

If ATC is cash-flow positive, why the need for the Note raising to be done at all, especially for an amount as little as $750,000?

And, what of the conditions attaching to the Note? At what price will the Note become Convertible into shares, and at what point in time?

If issued at today's closing price of 18c, then >4.0m shares could be attached to the convertible note raising (~3.5% of the company's current shareholding base).

Of course, you would expect me to ask for more detail, as insufficient detail has been provided to date.

But, again, what of the Griffin raising? Has that progressed, or failed, particularly given that it was announced ~2m ago?

Sorry, guys. But I am not yet convinced, for the following reasons:
1)
financing remains an issue;
2)
shareholder dilution is an issue;
3)
the deemed passing of control is likely to become an issue;
4)
accessing FNT's revenue stream (if required) may well prove to be an issue;
5)
the 4 months worth of delays to date remain a point of contention;
6)
the manner in which any new share issues will be priced /terms set, is likely to become an issue.

But, if ATC /FNT can get over all of these hurdles, then it is possible that the transaction may well work.

In the meantime, Yanlin, are there any FIRB (Aust), ASIC /ASX (Aust), Offtel (UK), or Hong Kong /mainland regulatory issues involved that still need to be attended to?