Yeah I'm not particularily pleased about the outcome, however I look at what could've happened, if the sale dragged on with potential for cap raisings, further dilution & increasing lack of focus/distraction on core business and I think a bit of short term pain (swallowing a large writedown) might be good, for the long term.
Personally I think in hindsight that MLA was biting off more than it could chew and that former management had dilusions of grandeur, overpaying on an asset that still needs a fair bit of polishing and significant capital investment (as shown by the subsequent working capital CR, post acquisition.). Expansion away from your core business and knowledge base has risks and in this case Management appeared out of their depth in my view.
However, now with the Medivet 'fiasco' behind them (- settlement going ahead in the next week or two), an expanded sales team, solid core market with plenty of room to grow and a steady as she goes management team I think MLA is looking like a reasonable value play in the sub <10-15m market cap space. It will remain to be seen whether management can come good on some of their projections and finally produce in quarters ahead.
IMO DYOR etc...
MLA Price at posting:
5.5¢ Sentiment: Buy Disclosure: Held
