General take on the current situation...

I think the Market is dubious here at present... At first I was wondering why yesterday’s announcement wasn’t received by the market as a positive incline in the SP...

Prior to yesterday we had a serious volume increase with a slight jump in the SP.. Today we have a stagnant day; I would say a few are scratching their head wondering why the interest has subdued.

This is my take on it, Im trying to predict the future here a little. Also I am very much a realist and understand the plays that listed companies attempt on the market, so I am always skeptical...

According to yesterday’s announcement we have engaged with a UK-based medical device consultant to develop customized hardware and wearable devices capable of running their algorithms. The design consultancy (Avanti Med Limited) will work with leading UK-based medical device manufacturers, OSI Electronics, to design, test and finalize two CE-marked devices.

ResApp are somewhat confident that the CE approvals will be approved for the actual App, hence they are being proactive and taking advantage of a larger market and offering a more stable and professional device to the medical world. I believe RAP management was hoping for a strong response yesterday via the SP, if I was to speculate, the prior days volume would indicate that those in the know of this agreement also thought the SP would jump.. So why hasn’t it?

Last qtr’s report (ending 31/3/19) indicated we had $5,273,000 in the bank with a estimated outgoings for this current QTR of $1,437,000.... Which would leave us roughly $3,836,000 at the end of next month, being the end of the June, the last Qtr of the financial year..

With yesterday’s announcement there is a fixed price agreement of £75,000 in cash and a issue AU$250,000 for each device, being that of 2 devices, so hence $500,000 of Shares and 150,000 pounds in payment being that of A$273,000... upon completion if the devices meet ResApp approval they have agreed to pay $1,000,000 in cash or shares, however not confirmed which, though the shares will be discounted according to the VWAP at the time of payment.. ResApp also has a clause in place to pull out of the agreement if they are not happy with the final product... but lets say all is approved, and it is cash that is paid, so hence we will be using the banking funds of A$1,273,000 and issuing a minimum of $500,000 of shares.

So with only 4 weeks away till the end of the Qtr, with a bank balance estimated at $3,836,000 at the close of the qtr, we will have a projection of outgoings around the same of around $1,500,000 for the following Qtr, then we have the 2 devices that could potentially cost us into the 6 figures with in the next 9 months, plus we need to get another CE approval for the devices which is targeted for approval around 2020..

Once you start waying all the expenses up in the short term, by the end of next QTR we will be lucky to have just over a $1million in the bank... so hence what I think is really going on.. a large CR is coming as the lead up to strong revenue is still going to cost us millions...

With the current strength in the SP, the ongoing lead up to finalizing the App with potential CE approvals in place it is obvious this is a perfect time to raise some serious funds.. Part of the necessary development to achieve a potential billion dollar company...

So hence I think the general market is aware of this, and is now awaiting the announcement of a CR, which I think will go to sophisticated investors due to the strong potential of success here..
I am predicting the CR to be announced early next quarter, next Qtr regardless... IMO they would have it already in play... makes perfect sense.

Once the dilution takes place, funds are secured, projection of outgoings after the CE approvals are in place, development of the 2 devices prototypes meeting CE approvals, also production of the 2 devices, then serious marketing. We will finally be ready for making massive revenue... this my friends is still going to take some time... hence why we will need survival money, money for production of the devices, money for further approvals.... however the final outcome should see the SP at 5X+++ the current price depending on how much dilution takes place on the lead up..

So patience is needed, it’s obvious why the SP has been halted in its tracks..

Happy to be corrected if my figures are wrong, or I am missing something that would indicate otherwise..

Regardless of the perceived CR, the potential here is massive and looks strong...

My only caution would be if the company attempts to raise money without at least one of the CE approvals in place...