1. Royalties being paid (in cash) to UKCloud (i.e., to Dawson and other owners of UKCloud). The rate is 8.00% of IaaS revenues until January 2022. There's a few different tiers, but something to be mindful of. (See page 93 of the prospectus). 2. Discretionary royalty payment (in cash) to "Jeffrey Thomas". The board has not elected yet to pay this, but my read is that at lease one of these (250k pounds) is owing, as the company has now listed (see page 94 of the prospectus).
I have no issue with Dawson and his UKCloud associates paying themselves for their IP and licensing etc, that is the price of business, but I think paying this in stock (as opposed to cash) is a much better option, seeing as how little cashflow the company currently has.
SOV Price at posting:
87.0¢ Sentiment: None Disclosure: Held
(20min delay)