I believe you are right in that this "'non-announcement" is...

I believe you are right in that this "'non-announcement" is pivotal for Alcidion, and that some investors would be wondering in the future how in the world that they missed the significance of it .

It is not just about the PoC but, more importantly, who we are partnering up with, and their credentials. I really think the significance of this "non-announcement" has been lost on many market participants.

I am personally so looking forward to FY20 (also Q4 of FY19) after this announcement and listening to Kate's podcast interview with Meagan Evans from nexttechstock. Some of the things I am looking forward to include:

- possible joint ventures in the Asia
- increased recurring revenues
- additional contract wins, particularly following the recruitment of two new additional sales and marketing staff
- complete integration of MKM Health into Alcidion
- rebranding of the new Alcidion
- early results from the first fully integrated Miya, Smartpage and Patientrack installation in ACT Health

For my own interest, I have tried to assess Alcidion against two other comparable companies in the healthcare technology sector. I tried to include more companies but had no success in accessing the relevant up-to-date revenue and balance sheet information. The information used is based on those publicly disclosed by the companies in their most recent 4C.

I believe the information speaks for itself in that Mr Market appears to be pricing in a significant discount to the valuation of Alcidion due to the lack of visibility over the underlying performance following the acquisition. Another factor driving this discount could also be the fact that no mainstream brokers are covering Alcidion, unlike the role performed by Morgans for Volpara Health.



Although I believe it is reasonable for a discount to be applied to Alcidion at this stage to reflect the above-mentioned reasons, the extent of discounting (when viewed through the lens of EV-revenue and revenue multiples) appears to be way to excessive.

Based on some analysis of EV-revenue multiples that I done a few years ago on healthcare technology companies (including the likes of Global Health, Resonance Health, Cosgate, Orion Health, 3D Medical, iSonea and etc), a multiple of around 7 to 8 is reasonable for Alcidion (after allowing for a discount), in my opinion.

Using reverse engineering and a very conservative EV-revenue multiple of 7, this would give an EV of approximately $111.3 million and a market capitalisation of approximately $112.6 million.... and a implied share price valuation of.... $0.14...

For transparency, please also note that the implied valuation does not consider how Alcidion's revenues is still generally skewed towards Q1 and Q4 of each financial year and that I am just an ordinary retail investor who has carried out this valuation for my own interest.