Hi everyone &
@karenauk,
At this end of the market, details can be a little hard to find & it does come with it's risks.
I am comfortable with my investment in GMV & the contracts GMV have in place at this point, based on the following information:
- The insurance company in Isreal, will assess the credit of the 3rd parties when assessing the deal, I assume companies such as Vodafone India should be fine. This is standard practice & is often used in the world of asset finance.
- The size of the contract seems in line with my expectations given the medical market in India & relative to the size of the combined contracts in China for the first year.
- If GMV has not commenced sales within 12 months of listing Louis Antoniou's salary will drop to $10K pm & Dr Geva's will drop to nil, until product sales commence.
- Dr Geva has purchased shares on market to the tune of $65K & currently has a holding of 193,469,154 shares @ 52.5c, making his holding worth >$100M, I'm sure he will be motivated to at least get his shares out of escrow in 18 months. If these contracts don't come off, one would assume creditability would be lost by then, making his holding virtually worthless.
- GMV has no option but to make this announcement now, prior to the third party finance arrangements being completed. If wind of this deal had come to market, there would have been issues (given its size & hence the week long trade halt).
- There will be no definitive binding agreements until GMV has the approvals in place from the relevant regulatory bodies for all contracts. This has not stopped GMV from taking their product to market & getting contracts "subject to".
Again, I see plenty of value here. There is a lot of work to be done & we are all eagerly awaiting many updates including:
- FDA approval for the patch
- CE approval for the patch
- Announcement of Hospital contracts, GMV hopes to announce 3 by end of year.
- Shipping of first product
There are obviously others, but these are the ones I expect within the next 6 weeks, unless there are delays.
The staffing costs don't seem onerous to me as we are expecting shipment of first product next month & that requires many staff ahead of time to get everything ready & product manufactured. GMV had to setup a facility in China, perfect the product & make sure 5,000 units are ready for sale within the next few weeks, let alone prepare for 2018 sales production.
Don't forget, Dr Geva ran Lifewatch.... A company that generated in excess of $100M in revenue pa, I think he knows what he's doing.
Here is the information I last posted on these issues:
https://hotcopper.com.au/threads/an...660744/page-178?post_id=27014244#.WgeA4WXwyCQ
Good luck to everyone here, enjoying the ride so far
