EVO - Evolve Education

[golden city]

Happy time ahead

[Snow Leopard]

While the HY accounts look good and EVO appear to be rewarding my patience I am baffled that the have issued notes paying 7.5% interest in these low interest times.

Something to ponder on over morning coffee.

[sb9]

While the HY accounts look good and EVO appear to be rewarding my patience I am baffled that the have issued notes paying 7.5% interest in these low interest times.

Something to ponder on over morning coffee.

From their release notes...

"Proceeds from the Notes will be used to repay existing secured debt, provide funding for acquisitions in Australia and for general corporate purposes."

Could well be that they're replacing existing high cost borrowing with relatively cheaper new funding ??

[Snow Leopard]

From their release notes...

"Proceeds from the Notes will be used to repay existing secured debt, provide funding for acquisitions in Australia and for general corporate purposes."

Could well be that they're replacing existing high cost borrowing with relatively cheaper new funding ??

Yes, I read the details but, to repeat myself: 'paying 7.5% interest in these low interest times'

[sb9]

Yes, I read the details but, to repeat myself: 'paying 7.5% interest in these low interest times'

For the business they operate in, perhaps that's the best they could get I suppose...

[thebusinessman]

For the business they operate in, perhaps that's the best they could get I suppose...

If that's the case, the debt market perceives some risk... Interesting.
Disc: happy holder average ~10c

[Longhaul]

While the HY accounts look good and EVO appear to be rewarding my patience I am baffled that the have issued notes paying 7.5% interest in these low interest times.

Something to ponder on over morning coffee.

It may suggest that there was some urgency to get access to the money to make a larger than anticipated acquisition.

On November 9, they announced this in their shareholder update:

"EVO has now recommenced acquisition activities and is currently considering potential acquisitions with a value of approximately $20m which will be funded entirely from existing cash reserves consisting of funds on hand from the $83m raised in CY19 plus additional cash generated by the profitable ongoing operations of EVO."

Yet on November 27, they announce they have secured an additional AU$35M in direct contradiction of their update just a few weeks earlier. Why would they do this unless they had a particularly good target in their sights?

I expect we will hear about this soon. If there is any weakness in the next few days, I will definitely be topping up.


*Edit - a quick calculation gives me AU$65-$70M for acquisitions.

[Greekwatchdog]

Share consolidation announced https://www.nzx.com/announcements/364204

[golden city]

A bit sooner than I expected

[nztx]

A bit of haircut with the share consolidation ?

or just an exercise to firm things up for some further Cap Raises at a more respectable ticket price ?

or even dishing out shares for further acquisitions ?