The strike price for the SPXOA at 1.7c is more to do with the incentive offered to the sophs in the CR to put their money on the table than it is to do with where the company sees the SP being in 2 years time.
If the company thought the SP would only get to 1.7 in 2 years, the the SPXOA would not be converted and no further cash would land in the bank. Rather, the company quite likely expects the SP to be a few multiples of 1.7c in 2 years time such that no SPXOA goes unconverted.
It's my personal opinion that based on the revenue growth, and expenses reduction, trajectory since CC has commenced being onboarded that the SPXOA will be in the money before the end of this FY and likely before the end of the March 1/4. That is, I am expecting that revenue will continue to grow such that the Sept 1/4 will be about $2m revenue and the Dec 1/4 will be at least break even (it will be cashflow positive, but I'm ignoring the anticipated R&D rebate and just focusing on revenue v expenses), whilst the expenses will likely flatline at the level seen in the June 1/4 4C and may start to tick up again where there is a need to deliver rollouts to a greater volume of new customers.
Capricorn will be the next big buying group, but it won't be last and it's unlikely to be the biggest that Spenda onboards.
CC is an early adopter of the technology and an important proof of concept demonstration for Spenda. Capricorn will be next and demonstrate that Spenda can deliver at a 100x scale of CC (22,000 members v 205 franchisees). From those two transactions the broader franchising/buying group/co-operatives market will see the technology in action and that it is trusted by well known brands which makes the sales job easier as you're not trying to convince someone that it works, rather you can actually point to it working in the real world.
SPX Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
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