Ann: Reffind completes investment with Loyyal, page-23

OK good. The INITIAL paperwork is completed. Why initial?

1. Because there are holes-a-plenty to be filled
and
2. Because the "net operating cash flow" from the transaction is hard to discern.

The one thing clarified is the extent of equity ownership of Loyyal that RFN has (and that might become very valuable).

Holes to be filled
A) NOWHERE in the release does it say distribution rights. It does specifically mention RESELLER rights. Why is this important? Because distribution rights controls territory where the company (Loyyal) itself doesn't operate. e.g. in the US where Loyyal is, Capgemini & Deloitte can both resell (and embed Loyyal in a solution) but they cannot appoint resellers (only Loyyal can). I'm basing this in my personal industry experience.

B) Performance Rights ... this is where the rubber meets the road. What are the targets that Loyyal wants achieved and what investment in the territory (i.e. sales force and GTM plan for each territory) does RFN need to make to have a chance of success. Probably obvious in AUS/NZ but how does RFN plan to be successful in Japan? Been there seen how this works. They need to appoint local resellers. Language and culture are constraints.


Now that RFN has to some degree secured its rights what the local market wants to hear is how is RFN planning to GTM with a solution based upon the Loyyal technology and how do they make money on it. Yes, I've seen slide 23. Where is 23a, 23b, 23c.... to illustrate that slide for this market.

Very much a "consolidating" announcement as I read it.

GLTA