Ann: XTEK achieves major delivery milestone for Defence SUAS Orde, page-5

Most of your points can be easily answered when you understand the materiality rules that apply to continuous disclosure obligations.


For me I think the biggest question is how they are going for cash. $7m end of last half, $30m worth of work to complete but already paid for, and a lot of inventory WIP to wash through. They've gone through a very long period of completing projects without cash coming in after each delivery milestone (as it was mostly prepaid)

If they skate through into FY2024 and secure the next material contract without a raise that may show to market they have reached the scale required for cash sustainability and shareholder returns. If they achieve this it also retrospectively vindicates managements daring strategy to minimise dilution (discounts for prepayments preferred over using the ASX as a piggy bank), with latent rewards for remaining holders of the tightly held register.

Personally I am holding faith that they planned and executed the strategy well to minimise dilution. I regard Scott Basham very highly, he's a tough guy and a great leader, and I know the culture at XTE under him is very very good.