Ann: NNG Business Update, page-20

Too many posts to reply to each one but here's few comments:

1. NNG only trades in Perth. We have an excellent resource in NZ who works across many projects but not delivering in NZ.
2. The targetted acquistions are in NZ
3. The debt LOI was received in December to support the acquisitions in Wellington. Equity is now the challenge but can be resolved and then NNG is 3X its current size.
4. Significant OPEX has been eliminated in Feb and will be reflected in the March P&L
5. NNG's peers traded at 1.6X revenue in December and most are higher now. NNG has ~8M rev so should have a MC closer to 16M on equivalent valuations.
6. The shares traded up to 11c leading up to christmas and had a VWAP near 7c when the Rights was launched at 5c plus a fere option ex at 10c.
7. Profit on $8M Rev should be achieveable now. I know many MSP's that deliver 19% EBITDA on less revenue. Costs are the problem and thats not a multi-year dilemma.
8. Plenty of tech companies dont make profit. SOV and NNG are just two. Question is can you make a profit and if you do but re-invest it, why? Case in point: Technically Xero makes ~$500M profit but posts $6M NPAT because with only 9% market share they are best to re-invest in marketing to gain more subscribers. They can switch to profit in a heartbeat if they choose to slow down subscription growth.
9. NNG has excellent support from IBM, Fortinet and NetApp. We value those partnerships as much as value our own IP development in Hybrid Cloud.
10. NNG isnt a business NXT would want but NNG does own a DC. Selling the DC might be an option at some point. It has a carrying value of $300k and a replacement cost of $12M so there's equity in the asset.