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clock Created with Sketch. 31/08/21
14:24
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Originally posted by doctornoh:
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Well BG was clear- there is no need to fund it all upfront, the satellite contract should be staged in terms of payments according to milestones, the equity value of the project goes up as customers are signed, customers are signed as construction commences, there is clearly a LOT of interest with over 200 MOUS signed. So EOS is talking to equity and debt providers, but will potentially fund initial costs upfront (eg with the new $35m work cap facility), sign customers, then SELL down equity at a higher valuation. Debt is cheap atm so can fund initial deposit, get contract signed with the space construction element, then this triggers the MOUs to then Binding contracts (FOMO anyone...?) and then equity value goes up, then you sell down and potentially to a wider pool of equity capital (Eg more risk averse infra funds or the like who want to see binding customer revenue). It also puts the bargaining power back into our court (hey we can do this alone!). This is smart and the right course of action if the equity contributors are playing a harder bargain (same as a our shareholders who are saying Spacelink costs more than our market cap so why not) and to maximise shareholder value. Chicken and egg situation needs to broken and EOS has a pathway. 30 days to signing the satellite contract, give or take.
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@doctornoh Great post and thanks.
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