hey @dunnomuch, appreciate all your commentary on HMD,...

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quiet_observer

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29/08/22

12:48

Post #: 63382053
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Originally posted by dunnomuch: ↑

you have to be a USA accredited sophisticated investor (for want of a better description) If you have greater than $5m USD in investible assets then you will qualify for that sort of startup funding round. Normally speaking the American guys are looking for $250k USD at a minimum and more realistically around double that as a starter. They have a bigger market with much much bigger players in it. In Australia you need $2.5m AUD or an income over $250k to get an s708 certificate and the minimum entry amounts are as low as $10k AUD.

The Americans usually like to know what split you are making with your contribution as well, like 40% now and 60% next round sort of thing so $500k USD would be $200k first capital call and a follow on of $300k into the next round etc. If you can't make a follow on investment then they will usually look elsewhere unless you are bringing a specific asset/introduction or skill set to the table. That's just been my experience with it all and I'm sure there are plenty of different points of view. Just this week I had to send the first split to an American company that I had agreed to terms with back in May and it was literally that example that I've provided (not e-Lovu).

from what I understand, funding will not be the issue but there are bound to be some hurdles as they scale up... hurdles are the case with all startups regardless of industry. I would imagine that given e-Lovu is in a funding round to complete the contract with HMD there will be an announcement to the ASX once e-lovu closes that round. Once the round of funding is closed then the cash moves across the table to HMD and the contract completes hence an ASX announcement around e-Lovu's funding. That's not definite that there will be an announcement but I think it will happen that way. I would be amazed if the funding round did not complete.... however life is full of mysterious twists and turns...

Why would such a professional as our RW, chair of HMD, announce to the ASX that there was a deal on table for $550k USD from a brand new business without checking that they had sufficient funds to complete that stage of the deal? I don't know for certain however if it was me, I would have asked to see the bank account and confirmation that at least $550k was sitting there ready to go before shaking hands otherwise its just an advanced sales pipeline not a completed deal. At least that's how I would have approached it, RW is far more professional and seasoned than I am so I'm confident that HMD is in a good place with that deal and that's why I would be amazed if funding fell over from here.

does that all make sense? Small investors in the US are a bit bigger than small investors in Australia.

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hey @dunnomuch, appreciate all your commentary on HMD, interesting as I do some research
what you reckon about https://www.watoday.com.au/healthcare/fetal-heart-monitors-implicated-in-stillbirths-neonatal-death-20220825-p5bcm1.html
more of a distraction than a roadblock? David and the regulatory team would be all over this surely? and Oz only a small market for Herabeat

HMD Price at posting: 15.0¢ Sentiment: Buy Disclosure: Not Held
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0 Great analysis

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