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Ann: Successful Completion of $120m Underwritten Placement, page-65

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01/08/24

13:45

Post #: 75026886
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Originally posted by naomhan: ↑

It really isn't.

They raised multiple times what they needed 2 months ago. They earmarked that as "inventory".

This presentation splits:
Current Cash: $146m
- "Committed Inventory Spend" - $45m
- "Expected inventory spend" - $50m
- Other (working capital and R&D) - $51m

This comes with some obvious notes that we can make...
- If you spend $45m of inventory (committed), there should be about $100m of sales out of that in the not-too-distant future (depending on the profit margin). So then you'll have cash in the next couple of months. Couldn't that go to the expected inventory? Or the new R&D projects?
- Expected inventory spend - kinda feels like a placeholder. They'll get cash from their other inventory. If they had committed to spending this, it would be above. They haven't. They just like having it in case.
- $51m funding for "current R&D programs, inventory requirements and working capital" is very vague. For starter, they just finished earmarking $95m towards inventory. To say that part of this $51m is also inventory feels like they're just saying "etcetera". We get their quarterlies, we know that working capital ex-inventory is about $4m last quarter. They're also making sales and are profitable. So let's say that $10m of that $51m is reasonable. That leaves $41m of R&D, which they didn't plan on 2 months ago.

So in the last 2 months, they've made plans for $41m of R&D, and now another $90m of R&D, which they've basically just said "AI" and hoped that will explain it.

You can't blame shareholders for questioning it given a complete lack of information.

Expand

Based on what? Continued and growing market share? Not one person knows what is coming out from other companies and start ups, is there no competition to such a basic and simple anti drone system?

Risk from big US and European companies is not even discussed.

All you would need to see is change of Legislation from the US government and its game over or massively curtailed.

what was I saying about other high tech in the past, such SAS?

DRO Price at posting: $1.18 Sentiment: None Disclosure: Not Held
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Last $1.32		Change -0.055(4.00%)		Mkt cap ! $1.151B

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Ann: Successful Completion of $120m Underwritten Placement, page-65

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