MC seems low for Anteo?, page-58

Hi @Twinvest,

I don't agree with this comment;

"
We are at current prices because of the apparent funding arrangement taken by the major shareholder

Nothing else"

I can think of a few reasons we are at this SP.

1. Failure to execute commercial deals. Until they can sign a meaningful deal worth $1M or more then the market will shake off the talk IMO. They can have all the potential in the world but it wont cause a SP rally this time IMO.
2. The earn out which is payable according to the half yearly in April 2017 which is 7.266 million euros or roughly $9.8M Australian. How are they going to finance this in less than a year? According to the quarterly Diasource has Net Assets of 4,389,835 euros or $6 million Australian. Mark Bouris says financing to cover earn out in the half yearly but I cant see them getting anywhere near the financing they need to cover this so back to shareholders for more funds unless they can sign some commercial deals. (which the market doesn't believe) If they finance it anything like the train wreck they managed to do this time around with a years notice where will it leave us next April?
3. Using the quarterly and half yearly I can account for $785,000 one off costs. This leaves $1.1M loss per quarter. Out of the $1.1M, $650,000 is to pay the vendors for the instalment (despite it being a half yearly payment it is accrued for accounting purposes). I'm sure there were other expenses in there as well but how significant will they be? We wont know until next quarterly.
4. Lack of detail - The company has talked about so many potentials etc etc but where are these interactions at? We don't know because the company wont tell us anything. Where is the bioseparations deal which we had a raising for 3 years ago (come September) which was meant to fast track the opportunity from 5 years to 3 years. There is no mention of it since the internal changes at Anteo.

I know this post sounds negative (because it is) but I still think they will get some deals over the line over the next 6 months which started in February according to Mark Bouris.

I also estimate the loss will most likely be in the vicinity of $500,000-$750,000 before any additional income from Anteo within 12 months so they should have enough cash for 5 more quarters (not accounting for the earn out).