Here you go sunny ,hot off the press ( cut and paste not my words )
The offer is attractively priced at 7c vs last close at 8.8c…….providing material leverage to future news flow expected late July.
Product will be sold to distributors at $170 USD (retail $349) giving IOT + 50% GP margins of ~$85USD per/unit. (first 50 000 units to be at 35% margin or ~$65-70 due to higher production costs in ramp up)
Simple way I look at sales is for every 100k units sold = $8-10mAUD+ GP. Firm orders are expected in late July following a planned visit to US retailers July 15 and first delivery is expected in Q3/Q4 ready for xmas demand.
USA sales sided of the business is covered by a wholesaler (Top Tech Distribution) who takes 17% commission and has direct links to Walmart, Bed bath & Beyond, Amazon etc.. (There is strong USA demand from what we know)
Key near term catalysts includes:
· Marketing video release of Roam-e flying selfie drone (
)
· Potential firm orders for Roam-e (July post USA meetings)
· Expected delivery to retailers of Roam-e (Q3/Q4)
· Revenue updates (Q3/Q4)
· New product releases (2H 2016)
· Xstream demerger.
