Ann: Distribution Agreement Signed with GlobalSat Group, page-50

I think the assumption that crabbe21 has made;

"...if SAS Nano Sat isn't that good they are only going to lose 10milliom and the first 2 years is only the start."

...is actually false. To directly quote from the announcement;

"Under the terms of the agreement, SAS and GlobalSat have established non-exclusive commercial terms for GlobalSat to distribute,sell, market and promote SAS’ ground-breaking narrow-band connectivity solutions and respective products to its customers, affiliates, resellers, subscribers and end users within Latin America."

So the way I understand it is that global sat has no obligation to pay SAS a single cent based on this contract alone because the agreement is not a commercial offtake agreement. So I believe there is absolutely NO potential risk for any loss incurred on the side of global sat at all. This I think is confirmed by the statement;

"....SAS expects to generate revenues of US$5 million within the first 2 years based on the conservative GlobalSat Group estimate....."

Even the revenue numbers of US$5 million is an estimate made by global sat that SAS expects. So I think it is safe to conclude that the dollar value is not guaranteed let alone obligated to be realized by global sat and SAS. To be honest, in my view, the agreement really does not mean much at all. This is especially because as far as I know global sat is merely a reseller of services and equipments. So they do not own the spectrum and the infrastructure needed to provide connections to ground servers or PSTN, etc. In light of that then without commercial agreement with telcos that own them then SAS will have nothing for global sat to distribute, sell, market and promote and that 5 million would end up being nothing but hot air. Actually I think, all in all global sat is never bound nor obligated by this agreement to do anything at all if they don't want to....

I implore people to actually read the wordings on the announcement again......read the agreement again. If I am right I believe Global Sat is not bound nor obligated to do anything...then I think this agreement is...very silly...Do correct me on this but where does it say that global sat is obligated to do anything??? Where?Interesting....

Then I find the following part of the announcement very interesting:

"Sales will commence immediately following the launch of the first batch of Pearls and the suc-
cessful completion of in-orbit testing and designation as fully operational."

So that statement really confirms my earlier posts that states how I think that the pearls have not been tested yet and how that is a risk from operational standpoint let alone commercial viability. The risk of failures in both is real indeed.

All IMO DYOR..