After a long winter (lets call it a long 6 months), CR8 has finally woken from its hibernation.
Us LTers always knew it was going to take some time for the large multinational corporates that were trialling the ground-breaking AI tech to generate sufficient traction that would excite the market & I feel that the time is now.
The company has multiple large-scale contracts in negotiation with most of them at the 'business end' as per the last investor presentation. CR8 are on the verge of going live with:
- AMP
- Nationwide
- F100 Insurer
- Another F100 Insurer
- Metlife Asia
- Direct Money
- Large Australian General Insurer
- Australian Based Credit Union
There is much excitement with regards to the current news pending re: Material Contract. Will it be the go-live for AMP or Nationwide; or will it be another left-field contract which we are not expecting?
The company has told us that they developed their 'light touch' product, MAGGIE, on the back of customer requests... is this contract for the first MAGGIE customer?
The messaging from the company has been clear & consistent in each Investor Presentation & Webinar, they expect multiple go-lives before the end of this calendar year.
The only thing which was holding CR8 back from double digits IMO was the imminent CR hanging over its head. Everyone who can read a 4C would realise they're burning through 600k/month on average and they were going to need to raise funds before the year was out.
I am glad they have got this out of the way early & before any of the major go-live transactions as it gives the SP the ability to drive skywards without any lingering concerns about the cash position.
They are raising $5.1m @ 4c through Bell Potter. Note that this raise is on better terms than the disastrous raise in March - same price, but no attaching options, so all in all better terms. The demand for the raise was extra-ordinary & the scale backs across the book were extremely large. My bid was scaled back 50% !! (i.e. I only got half of what I asked for). Further, the feedback from Bells is that the CR was pitched to their AI focused investors who have had significant success over the last 2 years with Appen (APX) which has gone from 50c to $5 ... yep 10-bagger!
So it is fair to assume that this time around, the CR stock is in very safe hands who are in the story for the long term and who will help the company realise their potential. The majority of the investors received a 10-bagger last time they were pitched an attractive AI story, so they're in for the long term on CR8.
These are exciting times for CR8 as the flamingo will finally spread her wings & fly... in the spirit of tech lets call it CR8 2.0
(20min delay)
