Who is participating in the SPP?, page-108

The new debt facility of 13m is used to retire 4m of a previous debt facility; so the net goes up by 9m, not 13m. Also, since the new facility is linked to warrants, it should be somewhat cheaper than the current rate at approx. 5.98%. So there is an improvement in capital management.

To plug a number, at 5.5% for fully drawn 13m (likely, given growth expectation and past track record) the cost would be 750K pa. This, I think, could easily be absorbed by the projected EBITDA of more than 6.5m. In fact, the expected synergies of 0.8m would cover the interest expense.

The numbers seem to stack up. For a company with massive growth, and profitability (if at all) of microscopic size, this acquisition looks like a turnaround situation.

Despite all the apparent advantages, the SP has tanked from 13c to 8.1c (minus 38%) since announcement. ... and no rationale has been offered yet for this decline (other than the BOD are all tricksters and suchlike platitudes). Even if those platitudes were true (who knows), then it is still inexplicable that the SP erosion happened just after a very positive announcement.

In the above context, it is worth noting, that VC and Bergen / Longhill (who clearly would know a bit about the BOD quality) bought 5 mio dollars worth respectively, as recent as March 2021. ... only to sell a few months later at respectable losses. In the case of Bergen / Longhill at a loss of more than 4c per share (my estimate from the charts and the sell dates).