re: Ann: MNF enters into Heads of Agreement t... Wow, this is...

re: Ann: MNF enters into Heads of Agreement t... Wow, this is the goods! READ THE ANNOUNCEMENT!

Note that this post in an unabashed ramp from a long term MNF shareholder but one with undeniable substance.

Not only have we MNF shareholders been getting regular dividends from this puppy but now MNF has put itself in the box seat to pick up the lucrative Symbio in a very cash friendly deal. Symbio is wholly owned by the 2 largest MNF shareholders and is a VOIP service wholesaler counting Skype amongst others as one of it's largest clients.

In reading this announcement MNF will have no capital market borrowing, no capital raising and consequently no dilution to existing MNF shareholders and shareholders will get an asset in Symbio that is revenue rich (~20M PA), cashflow positive and profitable right now(~2M PA).

Add the 2 entities together and you end up with about $34M in Revenue and about $4M+ in profit. And the resultant share register remains unchanged at about 50M shares.

Of course this is not a freebee, MNF will assume an estimated $8M in friendly debt to the Symbio shareholders however some of this money (~$2M) is available immediately to make a significant dent in the debt. The balance appears to be payable over 3 years (~$2M PA). This will leave at a minimum about $2M PA in profit from the combined entities swelling to $4M PA after the debt is paid. This assuming no growth which is of course contrary to historical MNF continuing growth year on year ($0M 2006 - $13.6M 2011).

In order for MNF to pay for Symbio I expect that dividends may be cut a little or stay at present levels in coming years but the MNF SP increase will make up for it, if we want to sell shares.

This is a future 2-4 bagger from this point on, not sure exactly when but sometime over the next few years for sure.

Can't wait to see more detail.

Does it get any better?

I tips me lid at the MNF & Symbio directors. Thanks for safeguarding my investment guys.