Christopher your last paragraph is simply wrong.
The $11.5mil is to finance the companies working capital requirements. This WC cycle will be aprox 90 days. The assumption would be that the $11.5m would fund the production and sale of 250k units in a 3 month period. This equates to 1 mil units per year.
Your statement implies that NUH will be providing HP with 12 month trading terms. That is clearly WRONG.
I assume that it will take NUH a few months to start producing 80,000 units/ month. Thus the $11.5m of WC appears to me to be ample WC for this level of sales. As we ramp up the profit on these sales can go into ramping up production further.
1 million units equates to annual sales of $100mil and a GP of $30 = $30mil or $7.5mil/quarter.
We will be able to fund growth above 1mil units through our own profit and if needed a debt facility. I just hope that funding more than 1mil units annually is an issue that needs to be resolved.
If these numbers transpire then NUH is very very cheap at $75mil.
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