Various concerns have been raised that the Capital Raising is...

Various concerns have been raised that the Capital Raising is insufficient to cover the purchase of the first 20 Pearls plus normal ongoing expenses. I have a few comments on this:

• SAS will know better than anyone what their cash needs are during this period. I haven’t read any comments regarding why SAS would have limited their capita raising to $15 million, other than that this is what they think they will need!
• Without knowing what GomSpace’s payment terms are, it is impossible to work out a Cash Flow. For instance, if their terms are 50% by June 30^th and balance after completion of all tests following launch, any shortfall at that point could be covered by short-term bank loan or loans by the Directors. The project would have been de-risked to a large extent.
• I saw some reference in one of the postings to SAS having a sensible plan for the deployment of the first 20. Certainly, it should be possible to have a fully operational system covering a narrow band of the eventual target area of +/- 15 degrees of the equator. If this is so, and it would seem a sensible strategy to follow, significant income could start being generated at the same time as the GomSpace final payment is due.
• Finally, successful testing of the first 20 Pearls may be all that is required for a Telecom Company to take the plunge!

All complete speculation, but I would regard it as perfectly reasonable for a significant part of the payment to GomSpace for the Pearls to be dependent on the sats working; many factors will be under their control and they will be sharing responsibility for the sats functioning to specification. Obviously, the terms of purchase will be confidential and not available to shareholders at this stage.