Ann: Letter to Shareholders - July Results, page-18

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soulstice88

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24/08/20

13:39

Post #: 46768774
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Originally posted by SimpleJim: ↑

Nope, as mentioned in the letter stock takes 12 weeks from supplier to their warehouses. Then shipped from warehouse to customers.

Orders were placed late July/early August based on their announcement 30/07.
according to this announcement stock is expected September at the earliest. If you allow for 12 weeks like they've said realistically stock may arrive late October. Additional delays on the cards given freight was upended by Covid and there are industry wide delays.
So, stock will arrive in time for the holiday season, but how much? The credit facility is only $8m and they've essentially had orders for in excess of this.
There's either a capital raise coming or they're going to be 12 weeks behind orders for some time, unless they get a larger loan.
I love what they are doing overall but the next 6 months is going to be painful, as they've basically said in the letter. Don't expect linear growth.

There is potential, but sales will fluctuate from $2m to $5m pretty consistently. They just don't have the inventories or supply chain to keep up with growth.

Be careful paying a premium for this.

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https://hotcopper.com.au/threads/ann-bud-restructures-financing-unlocks-lifx-production-at-scale.5525555/

Please refer to that announcement with regards to Direct Import in particular. While not all orders will be covered under this arrangement, the largest will be.

BUD Price at posting: 5.2¢ Sentiment: Hold Disclosure: Held
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