Ann: $12m Placement Secured and $3m Priority Offer Underwritten, page-49

I have warned people of exactly this...

This is actually worse than I have predicted.

So 44 percent discount at .03 cents...So taking into account low SPP participation rate of around, from memory, 50 percent for the last CR, then presumably this time the participation rate would be much lower. So it would be highly doubtful that SAS would be able to get the full 3 million from SPP. My guess is that SAS would have to be content with 1 million from SPP for a total of, at best, 13 million AUD. There seems to be no info with regards to fees/transaction costs. So based of last CR I think it was around 6 percent. So overall SAS is looking at 12 million AUD.

Now, as far as I know, SAS still owe gommspace 3.2 million AUD for the CDR, etc so presumably the corresponding amount would need to be deducted from the 12 million AUD. So ultimately SAS would only end up with 8.8 million AUD. With that amount, technically, in my view, it would be improbable that it would be enough to build and launch the pearls while simultaneously cater for operational expenses, which means that there would need to be a CR again sometime in late 2019 to very early 2020. I think the risk is compounded by the fact that there is no certainty in whether or not virgin orbit would be ready in time. If taking into account launch delays and field testing of the pearls...I think the financial risk is just humongous. That is not even the end of it:

1. Still 3DS revenue to expect, which I doubt will ever come. If the revenue from that never eventuates then how much effect would that have on the SP?
2. By my understanding SAS need commercial contract with multiple carriers in order to generate revenue yet SAS has none so far.
3. Terminals? Build, installation, distribution?
4. Ground stations? Build? Cost? Timeline to completion?
5. Devices? Social Eco? Beeptool OYI-1? Build, dsitribution?
6. Timeline for the full constellation? By 2025? If by 2025 then by my logic then SAS would need to launch 50 in 2019 and successive years to 2025. If only 16 then when is the constellation going to be completed by?
7. Competition from well funded companies? One Web? Space X? Others?
8. What happens to Michael Malone and his contacts?

Lots to think about.

If price open higher then 3 cents then I doubt it would stay for very long because there would be people dumping their CR in.