Ann: EN1 Fireside Video Chat September 2019, page-37

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Paul100

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09/09/19

16:58

Post #: 40361209
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Originally posted by djwally: ↑

For EN1 to grow quickly it needs access to cash up front as well. Kind of like a mining company but different because its already built its asset in the past (good for us given the low current valuation). So now its all about gaining real estate quickly in this Industry to be a go-to player.

Look at The Trade Desk. They have raised about half a billion dollars in order to get sufficient real estate such that their rapidly growing revenue (of only about $400M p.a. from memory) gives them a valuation of about $11B USD.

Ted mentions AdSlot in the video who have over 1.5Billion SOI. With revenue of only $10M last year, they lost $7M but still have a valuation of $45M. A lot of dilution in that register compared to us - an extra 1 Billion+ SOI.

If you want to grow, you have to be prepared to buy ad space so you can sell it. If you are only doing that with your meagre profits, you are never going to grow quickly. But by accessing cash (we did it with notes facility first but all will acknowledge debt financing is far more attractive), we can start to grow quickly and despite your best efforts to ignore, we know that once revenue ticks over about $1.5-1.6M per month, the business becomes profitable. Once it is generating free cash via this route, it has many options - re-invest it (smart), pay down last remaining legacy debt (maybe) or even pay dividends (stupid at this stage given the growth opportunities).

I know you will ignore me again and my best efforts to point out the truth, so this post is directed at others with an open mind more than you.

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djwally
The continuing conversation about the debt facility leads some to conclude that the company needs this facility to grow.

The truth is though that the company is growing strongly and has enough funding to grow strongly without the facility.

The debt facility will just make the company grow even faster.

EN1 Price at posting: 2.5¢ Sentiment: Buy Disclosure: Held
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