Thanks - it's good to discuss this because we all have different interpretations of the XPED announcements.
Here's mine.
1. This is pure XPED fluff IMO. It's a non-statement. It talks about monetizing current agreements and progressing current MOUs as quickly as possible. What does that mean? Oh... we are raising less money, let's focus on monetizing as quickly as possible!?! Wouldn't they be doing that anyway? We know they are working on agreements and MOUs, so not sure why this is news to people? You can imagine the board thinking when drafting the update "lets use the words agreement, license, monetize. that will distract them"
2/3. Both in the original announcement and the Q&A with Marty (I have copied both below), the reasons given do not include acquisitions. It's about building a well-capitalised XPED as the large corporations we deal with expect/require that and also to accelerate development, sales, marketing, channel partners, etc and the money would take use through 2017 and 2018. Sure it might have been used for some small acquisitions, but it's not explicitly stated.
Considering the above... Your last question is my exact concern: "All of a sudden they can do it without the 20 million?"
Hopefully we have enough cash to convince some companies that we are sufficiently capitalised and to take us through most of 2017. Than depending on agreements and when revenue starts flowing, IMO we will need to find money again for 2018.
FYI - I have sent them an email today asking about this. And also about the SPP shortfall, advisor options, and my concerns around governance and communications. Let's see if I get anything back...
Announcement
Funds raised by the convertible notes will be used for:
* Acceleration of roll out with new channel partners, and recent acquisitions, additional capital is required for acquisition integration and development costs;
* Further expansion capital required to expand service offering and secure additional channel partners; and
* Costs of the offer
Q&A with Marty:
Q. The company sought to raise more money recently. Why? The organisations that Xped are seeking to license our technology with, are very large multi‐national corporations, that expect to see a well‐capitalised Xped, which offers long term surety to reduce their own risk and exposure. I spoke with the Board requesting additional funds that were needed to grow the sales and marketing channels along with acquisition development costs to ensure the Company had necessary cash reserves going forward.
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(20min delay)