MLA Medical Austaralia

[Well Endowed]

Agree on the overpayment, although my interpretation was that this was priced so the deal included the Medivet-USA part of the business and was based off fairly generous projected future earnings from that, If they can get anywhere close to those then there will be decent profit, however that still needs to be achieved...

There hasn't been a huge amount of information on Medivet financials, so looking forward to more as it unfolds. I found it more reassuring that SH'ers of Medivet have agreed to reasonable escrow terms and the SP premium, bodes well for a stable registry over the next 12mths and gives management some time to deliver on their lofty projections.

General Meeting is early this week and should be quite a bit happening over the next couple weeks with consolidation etc, so might be one to watch. I find HC to be way too cheerleader-ish so it's good to get an unbiased view on how others see the proposal.

[steve fleming]

Agree on the overpayment, although my interpretation was that this was priced so the deal included the Medivet-USA part of the business and was based off fairly generous projected future earnings from that, If they can get anywhere close to those then there will be decent profit, however that still needs to be achieved...

There hasn't been a huge amount of information on Medivet financials, so looking forward to more as it unfolds. I found it more reassuring that SH'ers of Medivet have agreed to reasonable escrow terms and the SP premium, bodes well for a stable registry over the next 12mths and gives management some time to deliver on their lofty projections.

General Meeting is early this week and should be quite a bit happening over the next couple weeks with consolidation etc, so might be one to watch. I find HC to be way too cheerleader-ish so it's good to get an unbiased view on how others see the proposal.

The transaction makes heaps of sense. It is a shame that MediVet is not currently more profitable. You have to rely a lot on assumptions and blue sky to get to the price paid by MLA.

If the Directors can get the capital raise done at 3c, that would be a huge effort, and they would have done very well. Having the cash is critical to fund increased production capacity and hopefully a bigger sales and marketing team.

[Well Endowed]

Revision of initial proposal, Still attractive escrow terms. Increase in the price paid by +1m to reflect improved Medivet performance (which is really promising given the relatively short time frames).
The 50:50 script/5m cash payment proposed in June is now instead 100% script, issued at a premium to current SP (30c.)

http://www.asx.com.au/asxpdf/2013092...5zh3y3hhd0.pdf

SP has been advancing upward - although is still relatively small volumes

[Well Endowed]

Things picking up for MLA, management looking at trimming costs and selling Clements. Also just reported two consecutive quarters of positive cash-flow, which I don't think was ever achieved as BMDi. AGM later this month to formalise the revised fully script proposal. Could finally be getting its act together after a few years of promise, and failing to deliver. One to watch in my opinion; disc: holding.

"As a consequence of the 2013 performance, your Board has embarked on a review of operations and, as a result has initiated headcount and general overhead reductions in order to reduce cost and to streamline areas of the business. The benefits of this review and the actions taken, will become evident in future reporting periods, with over $1 million in recurring annualised expenditure having being removed from the business"

"While the Company did post a significant net loss for the financial year, a considerable proportion of this loss can be attributable to both the acquisition of Medivet Pty Ltd, in particular costs associated with due diligence and capital raising, and the impairment write-down taken on the Clements business. In relation to the latter, we are in discussion with a number of interested parties on the potential sale of this business unit."

[Well Endowed]

Big announcement for MLA today, a real company changer. . . !

102m Shares now on issue, SP up 27% on open today to 23c. Medivet acquisition completed

http://www.asx.com.au/asxpdf/2013121...t4tn5srdh2.pdf

Disc: Happily holding

[Well Endowed]

4m raised from Lang Walker (billionaire) and Windfall Trust NZ, another vote of confidence. Good volume (by MLA's standards) going through the past couple days around 20-22c.

Mark Donnison (CEO) quoted as saying "I would expect the combined entities to do several million dollars of EBITDA
next financial year."


Shaping up to be a profitable company in FY14 with revenues well in excess of 10m+ (incl medivet's) and multiple products/ revenue streams. Current Market Cap circa 20m, with approx 1/3 of shares in escrow for 12-24mths

IMO, thinking this could be sitting north of 30c following the next quarterly (reduced expenses & first proper Medivet America financials - assuming these show the increasing sales that resulted in the more favourable renegotiation of acquistion price.) Hoping for 40c this time next year. Don't want to pump it, but think MLA could produce some decent sustainable SP growth this coming year.

http://www.medaust.com/IRM/Company/S...astTrackGrowth

[Bigeasy]

Hi Well Endowed - I've been a holder of MLA since 2011 and it has been a rough ride the last few years, and I just put the shares in the bottom of the drawer believing one day that the executive/ management would get into gear and restructure MLA to be more attractive to investors.

I am positive about the future and direction of MLA and happy to hold.

[Well Endowed]

Hi Bigeasy,
good to see someone else holding too! opened at 24c today, up 9%, 24c/26c bid offer now. Low volume but won't take a whole heap to see it trading around that 30c mark (which I feel is about the right level, before waiting to see quarterlies and cost saving initiatives kick in.)

[Well Endowed]

last traded 27c, (27c/28c), ^10%. low volume today, - so not reading into it too much. But moving in the right direction.

Half year report should be end of February

[Bigane]

Been watching this and RGS for the past few months and can't decide which one to buy. My thoughts are MLA for med term profitability, but RGS is a better platform for long term growth. Anyone in both of these and can offer some comparisons?