I think some shareholders would prefer to keep the €500 per...

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12/02/20

12:27

Post #: 42885031
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Originally posted by walkdontrun: ↑

Here is what I think this means for investors.
We know the price for a test is €3,000 and the commission is €500 and that the partner pays all costs associated with the test.
We know test numbers rise by 1,000 per annum and the contract is 'take or pay' so EBIT is locked in.
Therefore 51% of €2,500 is €1,275 @ EUR/AUD1.68 = AU$2142
EBIT to IVQ
Year 1 = AU$6.426m
Year 2 = AU$8.568m
Year 3 = AU$10.71m
Year 4 = AU$12.85m
Year 5 = AU$15m
With around 575m shares on issue at a no growth 10PE this contract alone justifies 11c per share.
This is a very good deal adding risk free EBIT. There might be some drag as non contract numbers take time to ramp up and there will be some further dilution from the incoming Chinalink funding however it shows the operational leverage and I would expect further deals such as this to be added over this year.

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I think some shareholders would prefer to keep the €500 per test.

Investors in IVQ have carried the risk and costs to date.

A new company is created with a 51/49 split in favour of IVQ.

The new 49% partner pays for the lab and cost of setup.

But IVQ shareholders have to give up 49% and €500 per test.

I don’t think it’s the best deal for IVQ.

Happy to be set straight.

If not, how can I invest in the 49%?

Last edited by rolling: 12/02/20

IVQ Price at posting: 6.0¢ Sentiment: None Disclosure: Not Held
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0 Great analysis

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