Close the Loop Ltd

ASX:CLG

Close the Loop Ltd

ASX:CLG
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$0.093 (+4.5%)
Last close price
#613
Rank
1
Held by
15
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Forum Topics CLG CLG Adamantem DD

Pinned straw:
Tom73
Added 2 months ago

CLG announced that the exclusivity period for Adamantem to do Due Diligence has now expired (following an extension) and that there is at this time no binding agreement for the $0.27 indicative proposal to buy.

Hopefully it will fall through and they will get back to running the business and look for offers which are not as opportunistic (below a price it traded at within the last 6 months).

I should have known you get rubbish management for a rubbish company...
SudMav
Added 2 months ago

This is an interesting announcement which im still trying to decipher to signal/outcome. Whilst im no expert, with negotiations still onging my take is that it could be one following things going on

  • Adamantem are dragging their feet on the deal and asking for a whole bunch of extra data before they sign;
  • Adamantem are dragging their feet and CLG are trying to hurry them up by putting the fear of competition into negotiations;
  • Adamantem/CLG are trying to negotiate too hard on price and it might not be in the best interest of shareholders;
  • CLG management believe that the market price offered is too low (i.e. might have had an exceptional H1);


Im not sure how this plays out, however the longer this goes on the uncertainty about CEO, and the refinancing discussions being on hold means that shareholders will be worse off in the long run if a deal of some sorts does not materialise.

Will see how this plays out from here.

Disc: held

9
Tom73
Added 2 months ago

Well it's official now - Adamantem have walked away from the deal ("involved considerable complexity and the parties were unable to reach alignment")

And, as an additional blow 1H25 EBITDA is expected to be between $11-13m, which is about half what they were running at in FY24. "temporary unfavourable shift in business mix and a delay in the opening of the Mexicali facility" are to blame.

The are still "compiling information" for the half year results, so lets hope this is the only confession they need to make before the H1 results are out.

8
SudMav
Added 2 months ago

Yikes yeah its been a rough ride for this company, and with the news today share price is getting hammered accordingly (currently at .10c)

Lets see how much of a shit show this one is when they release their results later this year.

My main concern is that the 'unfavourable shift' is about consumers moving away from refurbished devices at the moment. Is this based on the deferred purchasing while they were waiting on election outcomes? Or are people shifting away from refurbished devices at the moment to wait for new devices with Windows 12 and "AI potential".

Lets see how much of a shit show this one is when they release their results later this year.

Disc: Minor holding IRL

7