Ann: Debt Repayment, page-36

theworst911, please keep highlighting any concerns you have, many of us are here to get different points of view and have hard discussions.

I happen to disagree with your view. Here's why.
1. Most small cap management teams don't have capital management expertise and rely on brokers and bankers to provide advice. Sad yes, but just how it is. Rather than Dom going to do a capital raise it probably came to him.
Perhaps it all started with Collins Street AM fishing around for a large parcel to buy. They bought $2.5m of the $5.4m raise. Broker then looked around for other interest and pitched CR to Dom.

2. The CR was done at a premium. I like that.

3. Having got $5.4m without much effort Dom and CFO Shaw then put there heads together to decide on what would be the best use of the capital. Clearly acquisitions were off the cards, as was returning capital to shareholders, so debt repayment was the simple choice. Any CFO has enough nous to work out the best debt to pay off first, and that is what they did.

I don't see much to dislike. Except I would have been happier with no capital raise and less dilution as the cash flow would have taken care of the debt over time. Also less debt means they could get acquisitive again, which scares the fork out of me