In the interests of trying to turn this forum into an informed...

In the interests of trying to turn this forum into an informed debate, l offer up the following.  I apologise it’s long, but l wanted to be thorough so l only do this once.  Please feel free to provided evidence based contrary views

Fact : The share is still not trading.

The company has been in suspension subject to satisfying two requirements;
1. Shareholder approval of Talico IP acquisition
2. Payment as per agreement with Jayplus

The market is not aware of any other reasons. To make up other reasons is simply unsubstantiated and open to being criticised unless evidenced otherwise.

With respect to timing of relisting, l have already put on record that I expect it to take a couple of weeks.  The company has been in suspension not trading halt. It is unrealistic to expect it to relist immediately as it would otherwise in trading halt.  It will be required to respond to ASX and obtain approval to relist, it’s not a time bound trading halt.

Whilst the announcement completes the outstanding requirements, anyone with a governance background would be aware that there will be formalities in responding to the ASX enquiry related to the suspension.  If there were further matters relevant to the suspension it would be reasonable to expect that the ASX would have required the market to be updated about this over the last 9 months. Again speculation to the alternative is unsubstantiated.

It would be also reasonable to consider that the company updated its shareholders at its earliest convenience that a deal was signed.  This is what we wanted to hear.  ASX formalities will follow and market update to be prepared.

So in the short term, l am more than comfortable basking in the knowledge that we have secured $5M, 25% of what the company is valued.  

I would expect a market update or relisting within 2 weeks.  To put it another way, the day l sign the contract for a block of land, l don’t panic that the house isn’t built tomorrow.  Not sure why this is of great concern to non holders but l can assure you as a long term SH l am more comfortable now than l have been for a long time.

Fact : A lot of the $5 mil (not all of it I accept) has been spent.

Firstly there is a difference between allocated and expended.  The announcement could have been presented more clearly however we can draw from information in the previous quarterly, the funding agreement and the announcement relating to the two part payment from Jayplus, to make informed assumptions about where the money is coming and going.
I’m not going to lay this all out but consider some of the available facts to inform a position.
Consider $5M in this context
At the end of the previous quarter -350k loan
Previous quarterlies tell us what operations cost take this figure and subtract 150 additional loan, that’s 30 June 2020.  My assumption of the additional loan amount includes a payment to Lind for shares due to be issued but weren’t due to suspension.  Take the total loan amount and a % of the admin and marketing costs this is the total amount that has been expended.  View the terms of the Jayplus agreement and see what it includes, an amount of over $2M is allocated to undertaking the required works to deliver upon stage 2 of the agreement.  These allocated funds underpin future operational requirements to deliver against the agreement.  This is where l consider procurement principles, i.e. their ability to deliver vs underwriting the business.

Questions about paying down debt, demonstrate a lack of financial acumen. The greatest solvency risk to a business that doesn’t generate a positive cash flow is liabilities. The company has ample access to future funding to not put themselves in a position to carry debt.  This deal includes an annual licence fee yet to be disclosed.  Given they’ve paid $5M I am more confident that this licence fee is material rather than past failures that derived no revenue.

Fact : The last closing price of the share was 4/5ths of a cent.

What do you think will lift the SP when it resumes trading?

If you’re worried about .008 as a number then you’re at the wrong end of the market, it’s all relative. .016 is also a small number but it’s double.  I suspect the market will judge it by MC in the short term.

The company is clearly in a stronger position than it was pre-suspension, a commercialised contract with a $5M upfront payment.  The first $2.5M we didn’t have to do anything, it’s just using our technology.  When you demonstrate it once, that is exponential to never.  The market is very greedy, it starts to think wonder what happens if they can do that 5, 10 or 100 times?  We’ve seen this trade high on fresh air, this is fresh $5M

I’m sure many of you are familiar with Afterpay, take a look at its financials, look at the losses it makes Vs it’s MC, draw your own conclusions about hype, future capacity and extrapolated earnings multipliers to MC.

A company director is heavily invested, buying strong pre-suspension and providing an interest free loan.  Wonder what he’ll do with that $500k he’s been hanging onto as the likes of Tony sell out?