Ok, I agree with gassed about the thread title. Sellers are mad....

Ok, I agree with gassed about the thread title.

Sellers are mad. I will be taking up full rights. Without offloading.

There seems to be concerns about cash. I'm not worried. Here's why.

Top earn out won't get hit.

Tracks earnings will be very good but I'll be super surprised if they hit it. I'll even bet 10k shares on it.

We have been told by the CFO that tracks 1hcy15 was high single digit ebitda growth compared to 2hcy14

We also got told that 1HCY is the better earner.

So let's say A$6.5m ebitda for 2HCY14 @9% growth gives $7.085m for 1hcy15

That's means even going off 1hcy15E track would need ebitda growth of about 41% in this current half.

Can't see it happening. So the high earn out would not be needed. I estimate $15m for cy2015.

Pros and cons both ways we look at it. But saves us $6.5m in the short term.

Overall I think the deal and the funding mix is sensational. There is work to be done.
But I'm confident.