BUD (ASX) Ann: Response to ASX Query

Originally posted by notlistening14 ↑

MY KEY TAKE AWAYS:

(1) Nestle is definitely looking to install more Ohms [23].

(2) The forecast revenue of ~$68m appears to be based on management expecting something like 5,000 Ohms coming online over three years globally.
- However, this revenue figure was based on scaling installations.
- At that 3 year mark, if 5,000 installations are installed, actual $ value will be much higher (a lower estimate would be approximately $40m p.a in revenue IMO).

(3) Rizon and Sasktel appear to be applying the higher (Digicel) cost of sale of Ohms (US$1,500/mnth). Only Ingram appears to be selling for the lower pricing.
- This means Ohms sold through Digicel, Rizon and Sasktell will generate ~$A12,000+ for BUD per annum.
- Ohms sold through Ingram globally will generate ~A$6,000+ for BUD per annum.

(4) Rizon must generate at least $1m of revenue in their first year (so something like 100-200 Ohms) - in of itself this isn't massive, BUT, it will provide a useful understanding of exactly how Ohm is scaling in the UK (through Rizon). That is, should Rizon fail to meet this threshold, we will gain a useful insight into where Ohm is at in the UK (and notification via an Ann).
- Remember, Rizon as a company was only recently formed, with the intention of applying the individual members skills to selling Ohms in the UK.

(5) I note that over the past 3 weeks the total number of Hotcopper viewers has risen by 50%, from ~14,000 to now ~21,000. The bulls are back in town?

(6) We edge ever closer to crunch time. That Q4FY18 quarterly is going be very interesting (and then every quarterly after that)! Patience is key.

(7) ASX has cost BUD a small fortune in legal fees for nothing. Surely we will not see another query again!

GLTAH. I was very, very happy buying some more on Friday

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Good summary. I went through the letter again and it seems to me that the ASX thought they had some “gotcha” questions such as #8 regarding the dates of the digicel announcement. Buddy’s response was basically “um, international date line...?”

I get that the ASX is doing their job, but after three letters I don’t see anything here. I don’t in the slightest bit feel like dave and Co have lied or mislead us. Everything checks out. I hope the ASX moves on as this constant scrutiny does impact the share price, not to mention the time and money it costs the company. Our company. I certainly hope this isn’t going to be the standard ordeal every time Bud makes an announcement. At some point the ASX has to go fishing in another pond.