I used to be in EOF. They had a direct-sales model and exactly 0 customer deals were disclosed to market. In fact, their 'pharmacy locator' on their website for that particular business unit was password-protected after too much investigation. They then switched to a multi-distributor based model in order to expand. And the business did expand. There were 0 updates regarding any sales from memory, asides from quarterlies.
It's only when they scored a deal with CVS to host an exclusive line of their product, that anything was said.
So don't expect any kind of update on specific sales here. we aren't targeting major 3rd parties directly here. we have 1 EU/Mideast salesperson hired directly. we don't know whether or not his job is to target distributors, or customers directly. I suspect distributors due to his rapid movements within Spain as we speak. IMO that's just to hedge our bets. 1 expensive guy that could score a nice deal vs a bunch of distributors which are free, but buy our product at a cheap price.
Distributors buy stock from us and hold the risk of the product not performing or selling withinin the target market. we get an existing network pushing our product (with the distributors' own interests at stake), they get CHEAP inventory to push for a nice profit. They take a large cut, that's why they're willing to purchase an untested (in the real world) product. In exchange, we get exposure at minimal risk to our own short-term finances.
That's how it works. we sell cheap inventory to a 3rd party, they push it to their customers to get a nice cut, and at the end of the day we see guaranteed revenue regardless of whether it sells or not. In the short term anyhow. If it does sell, we get more orders and more (limited price wise) revenue. If it doesn't, we skipped the whole logistics and salespeople costs, and still see initial revenue.
Once we're established and are able to have a huge salesforce based upon reputation, then we can expect individual contract announcements. In the mean time, stay seated and don't fall off your horse.
It seems as if a lot of people on here don't understand how businesses operate and are only chasing short-term profits based on expectations of imminent announcements which are not going to materialise. Not because there's nothing happening, but because they don't understand the business structure in which they've invested into.
It's annoying TBH. ADO could sell half of their manufacturing capacity and you wouldn't necessarily be hearing about it. Then you'd be on here every other day questioning when the next 'sales announcement' will come.
If you don't feel comfortable with your money, get out. If you feel like you're going to make money, stay in. If you don't understand what you're doing, go spin the roulette table at the casino. That's as simple as it gets.
ADO Price at posting:
20.5¢ Sentiment: Hold Disclosure: Held
