IMO if the Toomai money drops there will be a SP uplift but also a cap raise on the back of that.
My reasoning is 1 million will not complete the head end upgrade in all likelihood.
TV2U can reasonably argue a proposition to raise more funds at this point as they cannot dip IMO into existing cash reserves because the cash burn is already running at a rate of concern given we have low and uncertain income projections at this stage.
So I predict they will go to the market for up to 1.5 million later in Q4 quarter if Toomai lands as the reason to raise some funds. It will also depend who has to provision for the content minimum guarantee funds in the deal which content providers have in the past been known to have such funds placed into special purpose trust fund accounts for that sole purpose.
If Toomai does not land and Q3 quarterly shows income from K2 is lower than anticipated, or K2 churn rate higher than expected, then it will be harder to build the business case to convince shareholders to part with their funds for another cap raise in Q4 2016.
They would need to wait until Divan or some other deal shows up. IMO.
TV2 Price at posting:
1.7¢ Sentiment: Hold Disclosure: Held
