Hi
@sle,
Happy to answer as many of your questions as I can & hopefully help everyone else in the process.
I don't see CAT as a threat to the company are they are tracking different data. The barriers to entry here are high, as Gmed is using medical grade technology. I couldn't see that CAT are using medical grade & they have targeted sports, whereas Gmed have targeted medical, which is very regulated worldwide.
Seed capital of $2mil was placed at 18c with 1 free option with an ex price of 30c for every 2 shares purchased. This placement was completed in December, the shares are not subject to escrow, however the advantage is minimal compared with most seed placements. My understanding is Otsana have spent some time considering who should receive the seed offer. A total of
5,555,556 options were issued under this deal. If these get exercised Gmed will have an additional $1,666,666 in the kitty.
I like the Chinese JV, we have given them 30% of the JV for $5mil + $10mil in Government grants (we retain 70% for providing the products); however I see the real value is in having Chinese ownership dealing with the govt there. Everything is run by the govt & it is important to have that link IMO. If you think about it, Gmed raised $2mil + $12mil to get the USA deal up and running & there is $15mil available to get the China deal going.... The company has a decent amount of cash & should have secured the resources to get the approvals in place IMO. Any profits generated in the JV will be split 70% Gmed - 30% Chinese entity.
Regarding the trails, if you look into the FDA approval you will see there are no trial results required. I expect the trials have been run in conjunction with the requirements posed by China & the EU, which you will see Gmed have received approval to run in house. The reason they were granted permission for this is they would have applied for approval & proved capability. I expect some of these studies will come out when the applications are submitted or approved as they can be used as a basis for selling the products.
Below is the slide showing the details of the contracts:
The specifics of each contract are outlined below:
There are some very important points on this slide. There has currently not been a contract mentioned for the EU, I have not seen any comments considering this point, there will certainly be one at some point.
The US deal is a non-exclusive deal, MASSIVE point IMO, as I feel there could be more to come here.
I can also confirm from speaking with management the expected cost of the phone jacket will be around $100USD. Don't forget, the company has already flagged 3 generations of the jacket, the original & 2 upgraded versions leading up to 2018:
All related party shares (directors) are escrowed for a period of 24 months as per the ASX listing rules.
The 2 products don't necessarily work the same way. The phone doesn't need to be used all the time, only when you want to monitor or test something.
The VSS Tech uses real time monitoring & from my understanding is largely paid for by medicare (in the USA):
"It is anticipated that revenues in the US will be received by way of reimbursement through Medicare."
One of the points most overlooked IMO is the holdings of Dr Geva, there is massive incentive here for performance & a history of success:
"The Shares held by Dr Geva will represent approximately 57.44% of the Shares on issue on an undiluted basis and 64.77% of the Shares on issue on a fully diluted basis (each assuming that the Offer is fully oversubscribed)."
We all need to understand that information regarding costs & profit margins will be hard to come by, as it is a startup & they need to protect their interests. This is one of the more complex IPO's to understand as it is international from day 1 & details are always limited at IPO stage.
I hope this answers most of your questions. This deal is a ripper IMO & I think will bear fruits over a 24 - 36 month period in particular.
Have a great day everyone
