Ann: Trading Halt, page-11

Firstly - it does not take skill or art to raise money when ASX is literally at its highest point in history. A clever banker could IPO $20M to sell cow dung to dairy farmers in this market. Which doesn't write off the raise in itself - but think soberly. All the signals indicate the market is deep into the greed phase of the trading cycle.

Pentanet still only has 12,000 internet subscribers. Monthly growth is growing about 5-10% month on month, but I would hope to see the userbase doubling every 12-18 months - that is what 5GG's well-valued tech peers worked towards in the first couple of years of their listing. Look at Afterpay and Zip's user growth during the equivalent time period. At present rate of growth 5GG'll be lucky to increase their fixed wireless userbase 50% year on year. Not bad but not great. Half the capital raise goes towards the fixed wireless network improvement and expansion. This is where 5GG have a strategic first mover advantage and demonstrable expertise. If 5GG are bullish in this aspect of their business then I support them. I bought into 5GG because I belive in fixed wireless and 5GG seem to be the best bet in Australia.

But the other half of this raise is going to this quixotic games as a streaming service approach - a market in which the company has a geographic disadvantage, brutal competition, and no first mover status. According to figures cited in the presentation, there are 13 million PC gamers in Australia. Apparently one in two Australians is a PC gamer! I'm sure this will be news to millions of Australians... a pre-installed copy of Windows solitaire does not a PC gamer make. If statistics like that are what 5GG are building this vaunted cloud gaming play around then we should rightly be concerned.

DYOR & good luck.