Thanks for the heads-up @Slomo

Given Shaun’s business model is to have 100% ownership of high performers in their portfolio, the use of the money as part of this is not concerning to me. I am also grateful they have decided not to ‘roll the dice’ by allocating the majority of their existing cash to meet this obligation. Further, it is a relief the money isn’t needed to meet payroll or those types of re-occurring expenses - that would be a major Red Flag.

However, it would have been ideal if they didn't have to raise extra capital. So overall, the news is not overly bad but not great either.

What is great is the (in my view) complete overreaction from the market which I always love to see. I've taken full advantage of the ~15.5% drop in price today, as I believe the strategy is still on track despite the short-term impact the capital raise will have on the share price. I am focused on the only timeframe that matters, the long term.

To confirm: I have not ‘backed up the truck’ but am more than happy to bring forward the $’s I was going to put into the market in May.

Still waiting to see a press release or similar (maybe I missed it) outlining what they intend to use these funds for.

Going by their most recent financial reporting, I can only assume it is not to ‘keep the doors open’ but to undertake expansions. I have been a long-term holder and a big believer in Shaun’s work to suitability allocate funds, so I am happy to go along for the ride. However, using a personal analogy: There is a big difference between raising funds to build a new pergola (capital purchase) on my house V needing money to pay the rent or buy food….. one has/should have a long-term $ benefit, the other is just ‘keeping the lights on’.

Anyhow, I guess we will find out soon enough.

DISC: Held in RL

The FY FDV results were released today, and I continue to be a happy shareholder.

Although, I do find it amusing that the reports state, "All three regions had positive cash flow during H2 FY22, excluding one-off restructuring expenses, with cost optimization initiatives to benefit FY23 and beyond" (Bold is my emphasis) - essentially, this means that all three regions are not yet cash flow positive. But, that is what you get when you let marketing teams play with words in reports :)

Anyway, I've held RL for a while now and am a big fan of Shuan's work.