unbelievable, page-103

@rae915

They require a CR so they can put to bed the overhang of debt limit rumors.

They probably don't need a CR, but they will be forced in to one by the hedge funds & shorters who will make their bankers sweat as they pummel their SP in to oblivion.

As at 30-June they had c. 75m headroom in their debt facility, however post 30-June the following payments were scheduled:
- 2 x $41m payments for Kennedy acquisition
- 1 x $23m payment for Dividends

The 'overreliance' on net RAD inflow to fund these is an issue the hedge funds have focused on, specifically VGI Partners who correctly bet against the SGH business model.

The other thing playing in to the debt issue is the fact they have delayed their dividend payment until November 7. This was curious & the hedge funds are saying its because they DONT HAVE THE CASH prior to this ... i.e. debt limits are full.

Now, whether or not this is actually true DOES NOT MATTER. What matters is the ease of selling the story to the market & smash the SP to validate the story, hence creating a negative feedback loop.

Mark my words - there will be a CR in EHE... The price will be determined by the willingness of the directors to accept this fact & how long this takes - each day they wait, the CR price drops & the dilution effect increases.

No chance for a CR above $2 now.

Good chance the SP will be under $2 by COB given the mammoth amount of selling that will come in the afternoon by the margined holders.