Ann: VALMEC RAISES $5.1 MILLION IN INSTITUTIONAL EQUITY RAISING, page-6

Interesting that the announcement of 8 January said EBITDA margins are consistent with prior years, yet the announcement of 22 August expected the EBITDA margin to improve in 2018.

The blow out in debt of $5 million in the AGM presentation may reflect rapid revenue growth (though I assume this half revenue is actually likely to be close to the second half of last year) and the lags in cash generation, but maybe margins have not improved as expected as well.

The $5 million raised in the placement and whatever is raised through option exercise is needed both for working capital and the takeover. It will be interesting to see the cash generation in the half year accounts.