Ann: AD1 signs 5-year $10 million agreement, page-28

I will refer to my recent comments as a new arrival to the AD1 story after seeing it as cash burning a couple of years ago.

I said in the last couple of weeks that they appear to have crossed the valley of death to become a sustainably cashflow positive company with a solid growth runway and low probability of further dilution except for specific EPS accretive investments and acquisitions.

this announcement further consolidates cashflow positivity with the extra 0.25m per quarter guaranteed and likely to rise over the 5 yrs.

this stock is really derailing and the market clearly hasn’t discovered it yet so it’s still a great time to set a position. I’ve started averaging in and will likely continue to do so on further execution either as it rises or falls assuming the positive news flow continues as it is highly likely to. It would be nice to see a sp drop back to 5c for some accumulation opportunity but I wouldn’t be surprised if it trends higher despite considerable volatility due to the thin liquidity on low volumes.

I wouldn’t go overweight just yet, it’s still high risk... but the risk reward balance has shifted favourably now in my opinion.