Crash2016, I hear you but I don't see it like you do.
Facts are that they bought Ancar-B and Weston, which brings in an additional £3.7m revenue and an additional £0.8m EBITDA.
And out goes RMS for £1, which was losing £149k EBITDA on £1.2m revenue but also had a carrying liability of £2.2m.
That looks like a great short-term result to me. The net result, (after the acquisitions and the disposal), is that they are up on revenue around £2.5m and up on EBITDA around £1m and they have also disposed of a further £2.2m liability.
What's not to like about that?
I get what you're saying about the share price, it's painful for LTH, but if it was good at 30p, then it's a better deal at 7p, because if nothing else, the fundamentals are much stronger now, as is the board.
Rocka999, I don't think you've quite got the gist of the RNS!
"Pinnacle is today pleased to announce that it has entered into an agreement to sell the entire issued share capital of RMS to Intronovo Limited for £1."
The key phrase here is "...to sell the entire issued share capital of RMS..."
They've sold a loss-making asset for £1. That's really good news.
If I'm understanding it right, they've got rid of a business that was losing £149k per year. The whole business, not just the assets. This means that Pinnacle is no longer subsidising that company to the tune of around £12.5k every single month. That's £12.5k every month that's no longer going down the toilet!
On top of that, they have also off-loaded the £2.2m liability in that company to the buyer as well - genius!
Hope I'm understanding the RNS correctly but that's the way I read it.
No wonder they done a placing at 4p. This is going to collapse quite soon imo. There is no reason for such a premium share price in such a poorly run company. It's more like a vehicle for extracting cash from shareholders.
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