Intueri Education IPO

[Hectorplains]

Having looked into this a bit further it seems more serious than I first thought.

They'll need to raise alot of money just to stay afloat. Even at a low price I doubt there will be alot of interest. Especially considering the track record of the vocation industry over the last few years.

I think it's all over. Receivership looks like the only option.

Not sure what you have looked further into? The trading halt is still in effect and there's been no announcement.

[levin123]

Not sure what you have looked further into? The trading halt is still in effect and there's been no announcement.

I agree with Ogg. They probably mean thinking about the equation and wider implications further which is pretty simple really.

Best case scenario, the $6m VET cap increase will be denied. So then the question is, are current cashflows enough to service that debt? Answer probably not. Outcome? Cap raise, restructuring of debt or a straight breach of covenant. All of those scenarios are not good for shareholders, with the latter being a death rattle.

Worst case scenario, the registration for OCA is cancelled. It's not clear what sort of timeline this applies to, but the implication is the same. Massive chunk of revenue is vaporized and the bank recalls their debt or the covenant is breached. Outcome? Cap raise unlikely for reasons Ogg outlined, so then receivership is the only option really. Some of the debt could be sold off in a receivership or restructuring scenario but in a low tangible asset business, I don't see where the recovery is going to come from.

Bottom line = I'm afraid shareholders will most likely have to brunt a substantial or total loss

[winner69]

You're right, nothing's been announced so anything could happen but...

Even if they got off lightly with small sanctions I doubt the bank would let them continue as is.

They were lucky the bank supported them up to now, and even then it was only temporary relief and based on the hope earnings would increase next year. The bank was probably planning on foreclosing next year anyway.

They'll have to raise on market and I just don't see enough support at any level.

The bank will likely foreclose and look to sell everything to cover the debt.

Intueri Education will survive, just not to the benefit of shareholders.

OMG - that'll ruin me completely in Stockastic Comp

Mind you PLX is down more IQE at the moment - but not for long by the sounds of it

[glenmoretrader]

Unless you are an employee of the bank and working on the IQE file it's very hard to predict what they are thinking or their proposed course of action given a possible reduction in revenue. They have been supportive of the company to date, the company stated that it has the banks full support. In addition, the bankers and management of IQE would have foreseen the possibility of this reduction in funding and will have planned for it. Subsequently, the market may have priced in the fact that they may be hit with funding cuts to an extent.

The underlying assets of the business are still worth well a significant amount and can be relied on by the bank to sell if they required that step to be taken if they cannot trade their way out of it. The announcement is yet to be made however, talk of capital raises and receiverships is premature in my view

[levin123]

Unless you are an employee of the bank and working on the IQE file it's very hard to predict what they are thinking or their proposed course of action given a possible reduction in revenue. They have been supportive of the company to date, the company stated that it has the banks full support. In addition, the bankers and management of IQE would have foreseen the possibility of this reduction in funding and will have planned for it. Subsequently, the market may have priced in the fact that they may be hit with funding cuts to an extent.

The underlying assets of the business are still worth well a significant amount and can be relied on by the bank to sell if they required that step to be taken if they cannot trade their way out of it. The announcement is yet to be made however, talk of capital raises and receiverships is premature in my view

Fair point Glenmore. I guess we'll soon find out. This is worse than waiting for Xmas to come

[carrom74]

Intueri will be history and it is doomed...I feel sorry for myself and to the rest of the shareholders who have invested in this company...

"Intueri strongly cautions any investor seeking to trade in Intueri shares, and especially any investor seeking to acquire Intueri shares, to take full account of the information provided in this update before trading and consider delaying any such trading until further information is available"....

This statement is the final nail... I suppose.

[Ghost Monkey]

Cheer up, maybe it won't be that bad..........

"Possible outcomes from the audits range from a directive to correct areas of non-compliance to a full cancellation of Online Courses Australia Pty Ltd (OCA) and Conwal & Associates Pty Ltd (Conwal) registrations."

Maybe they'll just get the first part of the statement and not the latter???

[levin123]

Down 85% to $0.04 in early trading... Anyone holding? Or anyone keen to buy at this level? Thoughts?

[silverblizzard888]

Just bought some round the 5 mark, gutted to have missed the 4s. Way overreaction in my opinion, but we will see I guess. I believe net asset value wise it is worth more than 5 million, but it depends how you interpret goodwill.

[carrom74]

You are Brave Silverblizzard888....I wish you the very best!