These "one more 1/4" piddly little capital raising will be the undoing of NOR,
I think they are in a catch 22 situation, no business will give them deals / money up front while they live hand to mouth 1/4 to 1/4, they need the deals to get revenue significantly up, if they don't raise revenue faster they will need another capital raising next 1/4.
They would have had a better all round chance of success by raising enough for long term stability > $20m and then use it to buy market share to the point of critical mass. A well cashed up company would be a lot more attractive to investors.
The decisions making re how capital raising happens, how much is raised, to who it is offered, it being different earlier timing for insto selling private holders out. Its like the people running the company are setting things up for pumping then dumping.
The amount raised is likely already half spent.
So will they sell in-house on the release of good news, or do they know something we don't.
If you were BT ready to do a deal, how much cash in the bank would you expect NOR to have before you handed over cash for a contract, knowing NOR would likely still be around next year to honour the contract / deal.
The only way out I see is to offer shares in NOR to Telco as part of any deal in order to have a cashed up partnership.
But if this is the case why isn't it already a done deal.
The only other hope is that Messaging and WIFI apps start making a lot of money out of the traps.
They need $3m a 1/4 coming in to not need another CR 1/4 after next, based on spending.
Continuously raising small amounts, then spending it all fast, does not instil confidence. $20m in the bank with nearly 2 years up your sleeve would have. It would also put NOR in a better negotiating position and give them the ability for flagship business to get a limited free trial as proof of promis.
Regards Mark H
NOR Price at posting:
2.9¢ Sentiment: Sell Disclosure: Not Held
