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Ann: Major Defence Pilot Order Award, page-35

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05/03/23

08:07

Post #: 66607267
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Originally posted by justbyanose: ↑

I’ll be honest, I’m pretty excited about the Defence Pilot announcement. Best not get ahead of ourselves again, but by its response, the market seems to agree. Vection has been awarded an initial / pilot order for ~$1 million for the provision of mission critical ICT infrastructure.

What is ICT Infrastrastructure?
(Below is from What is ICT (Information and Communications Technology)? (techtarget.com))
“Although there is no single, universal definition of ICT, the term is generally accepted to mean all devices, networking components, applications and systems that combined allow people and organizations (i.e., businesses, nonprofit agencies, governments and criminal enterprises) to interact in the digital world.
Components of an ICT system - ICT is a broader, more comprehensive list than IT. ICT encompasses both the internet-enabled sphere as well as the mobile one powered by wireless networks. It also includes antiquated technologies, such as landline telephones, radio and television broadcast -- all of which are still widely used today alongside cutting-edge ICT pieces such as artificial intelligence and robotics. ICT commonly means more than its list of components, though. It also encompasses the application of all those various components. It's here that the real potential, power and danger of ICT can be found.
‘…..ICT's importance to economic development and business growth has been so monumental, in fact, that it's credited with ushering in what many have labelled the Fourth Industrial Revolution.’ “

It is explained Vections Integrated XR workflow & solutions suite brings together the ICT Infrastructure & the XR/MR/AR/VR/3D modelling to expand, yet simplify the clients end-to-end digital transformation. Assumedly once embedded is where the recurring component begins, with mention also of incremental development & adoption of industry specific applications.

This pilot contract confirms Vection has officially partnered with one of the top 10 largest defence contractors in the world.Timeframe of 6 months is given provided end client confirms pilot is a success that orders for as much as $30 million could come from this single agreement. From my research, agreements in this area appear recurring annual (if not increased) annually.

Who could this partner be ?... by looking at the top 20 defence supply companies, we have an affiliation with Boeing, Leonardo, Thales & Dassault, all of which have seen defence orders increase from the previous 12 month period. This $30M tender for VR1 is potentially massive for us, but ‘pocket change’ when dealing with players in this defence industry. Remember defence is just 1 of many industries Vection targets & this could well become an annual (minimum) contract.

Per the following chart, the value of Thales & Leonardo combined is $24,090 million (as partners themselves they are so heavily related) which would justify top 10 in annual defence revenue reference & be our partner in this instance?… is it Boeing at #3 with $35,093 million? Maybe another long term partner Dassault at #20. Remember were talking the thousands of millions here…(aka billions).

View attachment 5105089

Upon reading the fine print however, the above chart refers to defence suppliers in general, when actually its defence suppliers to NATO, NATO members & their alliances that this announcement is all about. Thales are in the top 5 NATO suppliers also, so its my assumption Thales is our connection. Eitherway, this list shows when accepted into this league of suppliers, generally you stay there & revenue increases YOY.

Eitherway, this is massive & another potential company maker for Vection imo. Another opportunity for success in addition to the long awaited updates on, but still ongoing potential partnerships with Cisco Webex, Autodesk Revit, the other partnership with Thales in recent NASA announcement, etc.

Vection (via our partner) is now in a position to supply our product to NATO directly, its members & alliances as part of the Certified TEMPEST Vendor list. We all need understand the legitimacy this brings as this is not some simple tick box list anyone can join. The Certified TEMPEST Vendor list is the one & only designated supplier list that governments of NATO related entities can buy from. Much expense & no doubt many months of applications, demonstrations, reviews, potential amendments, re-applications prior to approvals are needed if you are to get on this list for approval to supply products to governments & mission critical users. From acceptance, on-going bi-annual product checks still needed, security clearances invested in & upheld, secure storage & supply tests are all taken into account prior to now having been accepted are mandated upkept. So to get to this point is a massive achievement for a tiny m/cap ASX listed unknown co.

It also helps explain the cash burn over the last couple of quarters in preparation which is a necessary requirement in preparation for any supplier to the defence industry. It may be of interest Siemens is another partner of Vections that in addition to Thales is on the Certified TEMPEST Vendor list.

Anyways, yet another surprise box ticked in the out-of-nowhere column for VR1. Well done team & management. Surely in time all the foundational expenses outlaid already & these partnerships have to reap rewards for the business & us as holders. Feels to me this announcement in particular brings a bit of a nuck u to the haters & a reminder of the contacts Vection has & how quickly the numbers could add up all going well. If costs are kept in check then we should go ok from here finally imo.

I wont post a chart as it will probably jinx us, but the bounce off the double bottom & bottom of bollies at 0.046 was positive, while it would be great to keep above 0.057, there is now a gap at 0.051. Chartists would prefer that gap closed prior to us headed hopefully slowly but surely to the north east on the chart. MACD now crossed up over. Currently sitting above 20 & 50 EMA on reasonable volume. Interesting times ahead. Best of luck all.

Expand

Defence contracts aren’t very exciting for shareholders in reality.

See EOS, XTE, DRO, OEC and others.

Contracts are usually sufficient to pay executive salaries, not shareholders.

VR1 Price at posting: 5.6¢ Sentiment: None Disclosure: Not Held
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