Ann: Capital Raising, page-124

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coefficient

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14/03/18

15:20

Post #: 31749937
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Originally posted by OzJ ↑

20 pearls will cost about $15m to build and launch. SAS burn about $2.5m in a clean quarter (no big sat capex, which what q1 looked like). They have about $1m in the bank. So, it looks to me like they can run about one more quarter before they must find a cash stream of about about $750k a month. If it goes longer than that then they have burned into the CR capital pretty far and it will be difficult to recover the deficit from operating revenue.

So I think a few scenarios are possible:

1. They had enough funds to get Gomspace started on build already so my assumption on how long they go before they dig into capital are wrong. They could go a little longer.

2. They need to do another SPP/SI type raise. You would think they would be dipping into that well too many times at that point. This would be disappointing for me.

3. The diamonds bring in enough revenue to pay the rent. Possible, I guess. The q1 4C will be very revealing.

4. They announce some deals that somehow give them access to working capital later in the year. Perhaps another equity sale by another mechanism. Perhaps something else.

But regardless, despite the $15m the clock is ticking and it’s not long to the next cash hurdle. I’ll be sitting on the edge of my seat as I watch it develop. I’m not too overweight on SAS (although more than my good sense should allow) but I’m very interested in it. It’s my cheerleading stock. I really want them to win.

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Yes, will wait and see. What is done is done!

SAS Price at posting: 13.0¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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