Decided to do a bit of research into their products. Nano hollow...

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whitelist1

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15/03/18

09:26

Post #: 31766521
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Originally posted by OCM_ ↑

Cash flow positive in near term but also looking for acquisitions....... it should read as follows:

'we are not winning as many contracts as initially planned and are running well behind on our organic growth targets. At some point we wish to be cash flow positive but are struggling to execute our business plan with the current resources. We have underestimated what it takes to expand into new regions and as a result we will be raising money in the near term to buy a business with ready made contracts and try and integrate them into our existing operation without paying too much for it.

seen this so many times. acquisitions seldom work out well. For a small company they should focus on their core USP and product before they go on a shopping spree.

My two cents for what its worth anyway. Good luck coppers.

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Decided to do a bit of research into their products.

Nano hollow fiber membranes already exist, and are being sold by a company called Pentair.
http://xflow.pentair.com/en/technologies/nanofiltration
Pentair is a much larger company than De.mem, I don't know the technical details of the DEM membrane, since they have never put it up on their website, but I would think its an uphill battle against an established foe with a worldwide distribution network.

The new FO membrane might be even harder to commercialise
http://www.waterworld.com/articles/...-forward-osmosis-ip-as-cashflow-dries-up.html
This company apparently ploughed in 70m(!) and didn't manage to make it work, in the same market that De.mem wants to target (China).

Focusing on one core product would make a lot of sense, given limited resources and challenges to overcome!

DEM Price at posting: 20.0¢ Sentiment: None Disclosure: Not Held
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0 Great analysis

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