Ann: Trading Halt, page-146

@peter King,


"We understand that the 3 x Diamonds were initially strictly for testing and proving that the communication system created by SAS actually works. From all accounts the 3d’s are working better than expected. So much so that on 24thAugust last year Sat-Space put their hand up wanting to buy access to the 3D’s and pay an estimated $10-35Million per year. We have heard nothing since on this “Binding Commercial Off-take Contract” – no income generated to date.

From my point of view, and I am sure for any big time investor sitting on the sidelines, confirmation that the 3D’s are in fact working and generating a return for the company is when (in this case) Sat-Space makes their first payment. This would be clear proof that a third party (Sat-Space) is happy and making money from the system. From that first payment, it would be ‘game on’. Perhaps this payment, a significant milestone for the company, will be announced in Washington."

I think people still have misconception as to what the deal with sat-space africa actually is. Sat-space is a wholesaler/reseller and the agreement with SAS only means that sat-space is a reseller for any product on offer from the 3D's. Think of it like this, a certain manufacturer of a particular item approach a store to sell the item within the store. No payment would be exchanged until that particular item is sold off to someone. Once sold the store then take a cut from the sale and pass on whatever is left to the manufacturer. So the only instance where sat-space would pay SAS is IF a customer is found that would purchase the product.

What really should make people concern is the idea that SAS would even bother to offer the 3D's through sat-space considering that the 3D's were just test satellites. What was intention of having made the agreement and subsequent announcement, in my opinion, knowing full well that the 3D's would never sell? A question need to be asked. In my opinion, it obviously had the effect akin to deception because you for one truly believe that the 3D's was going to be generatig revenue. I am sure many others did as well and thus influenced the SP.