RE: Experience21 Jun 2021 11:25
09.49 - It's amazing how a bot of news drives so many alternative views.
I agree with what you have said. $400,000 reduction in total face value is an extremely good deal at its effectively less than 6 months interest (ie in 6 months time we will have already covered the very small discount in on going interest costs which won't be applicable) and thats ignoring the SOAs intended discount.
As for the purchaser....I think people are missing out (not you I suspect) the fact that these are tax credits. Therefore when the RNS mentions that the purchaser has ongoing revenue generating operations in the US, that means they can use the tax credit to offset their tax liabilities created through their US revenue generating activities. This is the same as any offset such as carbon credits. If you don't need them they have value to others that do need them. The purchaser is not looking of an SOA payout (thats only if you are not making revenue therefore no liability to use the tax credit against), the purchaser is making US revenue that has a net liability and therefore they can apply the credit immediately.
I also agree this is a cash burn advantage over and above any 'clean 'balance sheet to attract purchasers play. Its obvious that $16m is unlikely to be of ay consequence to a purchaser if we are having any true valuation for the company (which I don't believe is the right time for that acton).
$16m divided by the number of shares....its like a couple of hundreds of a AUD $ cent...or a couple of 10,000ths of an AUD $...its would make a jot of difference to a buy out valuation.
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