There is actually a lot in the announcement to be excited about. Especially given this initial order in the multi-million dollars zone for only 4 months.
Take point 4: The next four month production phase to include definition of long-term quantity requirements and roll-out plans expected to materially expand relationship
So from the above, this is only the beginning. The first of many multi-million dollars contract to come.
And there is this statement below which indicate absolute confidence in Elsight:
This contract includes a material down payment upon signing and a pre-agreed delivery schedule, ensuring that product flow aligns with the Customer’s deployment timelines.
I take that 'material down payment' to also mean that the customer wants to ensure Elsight has the financial capacity to deliver the order! In other words, they want this and they want it delivered on time. And they are willing to help ensure it is successfully delivered!
And then there is this statement:
This new relationship is separate to and on top of the defence contractor program and initial order referenced in the announcement on 25 September 2024.
That is another US$5m on the way over the next 1-2 years time frame.
Meanwhile the market is asleep on this one. With just this order alone, the company should be able to service that $1m loan and after that, no more worries about cap raise or loan anymore.
Good luck all. I can't wait when they start ordering for all those 'swarm of military drones'!
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