As Yacov’s salary reduces from AU$480k to $0k if there are no...

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08/02/18

21:47

Post #: 30929266
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Originally posted by Rod_Valens ↑

@Galilee13,
The info is in the 4C report, you just need to read the notes and do a bit of mathematics. The company was burning around ~USD1.1m per month (USD3.4m Q4-2017) up to Dec17 and that is the figure Yacov was referring. In terms of the cash outflow forecast then you need to identify the items related to the manufacturing for USD1m, investment of PP&E such as the purchase of Fixed Assets for USD1.9 and loan repayment for USD0.5m, so around USD3m relates to the manufacturing of the inventory and the rest ~USD4.9m is pure expenditure (USD1.63m per month).

The challenge here is to identify when the cash receipts will start flowing which is directly related to the CFDA approval but there is a reason why the operation is scaling up, so my guess is that some will start from May18 on-wards but I am just speculating. Yacov has been clear in saying that he won't provide revenue projections ,and I reckon this is the reason why he didn't answer the question about a capital raise directly, my guess is that he is betting in having cash in-flow from April on-wards so it can reduce the cash burning rate to a manageable level. I think Happy brings a valid comment, based on factual data, and I would like to see Management being more open with this but I always get the feedback that this is an infant business trying to develop its business.... So not possible at this stage but they are very optimistic.

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As Yacov’s salary reduces from AU$480k to $0k if there are no sales within 1 year of listing on the ASX, he’s got a strong incentive to get some sales going before early May. It’s in the Prospectus p107.

GMV Price at posting: 29.0¢ Sentiment: Buy Disclosure: Held
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