gridComm actively marketing themselves., page-4

Im guessing ODN will raise approx $7m, $3m to pay off debt and $4m for gridComm. Depending what the share price is, if they raise at 1c which IMO would be the base case, then they will issue 700m shares, coupled with some performance shares. The whole transaction as I said previously would be a maximum 2 billion shares issued, and at around 1.8c this would be a market cap of 36m, which is much less than POK ~$200m and RYG ~ $130m with much greater potential IMO...


GridComm’s network is currently deployed across 5,000 streetlights in Jakarta, Singapore and Chinese cities including Nanning, Shanghai and Hulu Island (Liaoning province).

GridComm recently won a contract for 10,000 smart streetlights in Jakarta with the opportunity to 50,000 over 3 years. The Company will generate contracted revenue in 2016 from installation fees, software licensing and the sharing of costs savings.

They get $100 per street light as one of their 3 revenue models and so far have a contract for 15,000 street lights, which is $1.5m revenue... Their revenue models are:

gridComm makes its money in three ways, according to Holt.

The first is via its networking hardware, where the startup is paid US$100 per streetlight. The second is by providing Software-as-a-Service (SaaS) to control streetlights, and data analytics to help set dimming profiles as well as to provide predictive analytics.

The third way is a ‘shared cost savings’ approach, which is just starting implementation. This is where the company works with the streetlight makers and share in the cost savings the city makes on electricity by using its technology.

A city like Singapore has 100,000 streetlights and Jakarta has 250,000 – the only way to make it cost-effective is if you use what’s already there,” he said.

So as you can see there is substantial revenue growth to come, they may not install 350,000 street lights right away but world wide growth can come exponentially... The most important part IMO was this extract from the following article...

http://www.iotjournal.com/articles/view?13742/2

The city of Jakarta contains 250,000 streetlights that may be eventually integrated into the system. It began with a trial of 100 lights during the first quarter of 2015. Once that system proved to work well, the city launched a wider deployment, starting with 10,000 lights in a single neighbourhood, several thousand of which have been equipped to date.

They have already trialled their tech, and it works!! The due diligence should be a complete formality IMO, there is no reason why ODN management would reject the due diligence if they have proven this tech will work and a wider launch of 10,000 lights will be installed after the trial period...