Are you guys doubting the bank loan and calling for a CR, reading the same report as me ?
You are making this out to be some $Bn capex efforts
They will most likely get a facility for $1-2M at <10% interest rates from a top 4 bank, as they have eluded to multiple times now. I very much doubt with such a conservative management team, they would be flagging a debt facility over and over if it wasn’t a done deal
As to your comment about not getting a facility because they aren’t profitable
@Thanky, really ? Every junior miner with debt is nowhere near profitability, Tesla with their $Bn’s. That’s a very naive comment
SP3 have $1M+ cash, $1M inventory (est), no debt, generating revs of $4-5M, recurring revs of $1M+ and probably a quarter or so from being CF+
Not only do they have QoQ growth, but diminishing cash burn. Last quarter was $190K
I have said time and time again you guys read “expansion” or “international trials” and automatically assume multi $M capex. It costs nothing to send product already on hand wherever in the world
The other thing I saw, was the comment revenue isn’t growing that much. They’ve flagged an 81% increase for a start ! I don’t think people also appreciate that the recurring revenue base is what the big money values, and selling 39 cameras on lease to a government who may pay for 5-10 years is nice sticky money
They have not yet tapped into overseas markets or other revenue avenues, so I’d say the $4.7M revs guidance will get beat, the same as they have every time before
A final point, has no one connected the dots. New MD used to head up Advisian, a division of WOR. We have shipped product to Texas for a US trial. My guess is an O&G related deal, could be a big ticket item
Yesterday’s news was nothing but positive and reinforced this as a no brainer buy here IMO. The only disappointing thing but no surprise, not a peep out of PAC
My guess is they will wait till end of June for FY figures to lock in the debt facility. If they can secure a new lead in time, they will be positioned nicely for 2H 2019
