Announcement yesterday that ALF's debt to CAML is fully satisfied.
https://www.nzx.com/companies/ALF/announcements/256264
A rubber stamp exercise/announcement really, as this was all announced on the 4th August, but nice to see it has been ratified and that ALF no longer sits under the repayment-upon-demand cloud while this CAML debt existed.
The debt to CAML as per the last annual report and subsequent announcements was $2.6M, and CAML agreed to a settlement of $2.0M from partial sale of their NZFL holding (via AFRL) for $1M plus the $1M available via the 3-year bond extension to 30 Sept 2017.
This adds $600k to ALF's equity on the consolidated financials, or roughly 0.5 cents/share.
Also, Chairman Garry Bluett exercised 1/3 of his rights on 30 Sept to take on board 1.16 million ALF shares. With the amount that Bluett paid (2.7 cents/share) plus the amount already set aside in ALF's last audited financials for this event, means the negative impact on ALF's equity for this transaction is very low (only about $30k in total by my calcs).
In my earlier post I jumped the gun a bit in my 20 cents/share prediction in a year from now (entirely possible though, given the very conservative approach I took), which is at odds with what I actually calculated which was a share price of 25 cents/share in 3 years from now and 2 cents/share dividend payout over the same timeframe.
Still, at 8 cents closing yesterday that would equate to a dividend yield of 8.3% per annum at today's price and a share price gain of 45% per annum compounding for the next 3 years.
Of course, ALF could always retain any dividend and increase their equity instead. Fine by me.
Disc: Holding.
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