Cafes leaving?, page-22

Here's some valid concerns:

- Rewardle listed on the ASX with turnover of $30,000

- That's total annual turnover - not monthly

- Ruwan pretty much bragged about it in the smart50 awards: How I raised $4 million for my business with only $30,000 turnover: Ruwan Weerasooriya and Rewardle

- “We basically took a traction story to the market and raised $4 million. We are over subscribed,” he says.

- The platform was already built and running in thousands of venues with 500,000 users and the software is pretty much the same as it was back then with a few tweaks here and there

- Rewardle raised another $5m in a CR, followed by another $2.8m

- So with $11.8m raised - that's not chump change - where is Rewardle at now?

- 2000 paying merchants, although it's hard to tell how much they're paying. Merchants in this space want to pay somewhere between zero and SFA for a loyalty system that doesn't make them cold hard cash

- Some great advertising contracts but they seem to come and go very quickly

- 4 times the number of users but who knows how many have actually transacted with the platform in the last 6 months

- The loyalty card wallet - that's been done before and has zero chance of making money

- Postcoder, not a bad idea but too little too late and how is it really going to generate any significant revenue let alone profit. Those articles aren't free.

- The universal loyalty points. By the time that comes out there will be no cash left. This itself won't generate revenue

- Without the R&D tax incentive Rewardle would currently have no cash at bank at all

- The R&D tax incentive has now been significantly tightened for software companies that have been over claiming what they've spent on actual Research Based Development. The next round of R&D won't be as generous

- It's another 12 month wait for the next R&D round

- Everyone was sold on the social aspect of Rewardle, the big data, the huge payment and fintech revolution - what happened to all of these promised treasures?

- We're in May now, there's been no facebook updates since Feb.

- Minor improvement in paying merchants. Have sales and marketing all been fired to reign in costs?

Does anyone need any more valid concerns? My concern is how does Ruwan sleep at night knowing that he's squandered 11 million dollars of people's hard earned cash and super. I think the business concept is a great one - it's just been wasted. All those people who bought at 5 cents, 20 cents and 33 cents now have only one hope that someone will scoop up the company. No one is going to pay a premium for this company, currently trading at 2.6 cents - if anyone buys Rewardle it'll be for less than a cent a share. In reality if you honestly wanted to buy Rewardle - what would you pay for it? Would anyone pay the $5m market cap it has now?

No.

Obviously do your own research - just raising some valid concerns.