India + Taiwan deal, page-9

Not everyone who asks questions is automatically your enemy. Chill out, I'm just a new holder. Bought my first parcels this morning and expanding my understanding of the company.

If the Tier 1 partners are funding this then a lot of my concerns are addressed. Still a bit of confusion regarding the wording on the announcement:


"For the avoidance of doubt, FCL has agreed to purchase and distribute in collaboration with its Tier 1 partners which will be ultimately responsible for the final distribution via their established networks, infrastructure and customers. FCL do not act as an introduction agency for G Medical itself, and will be integral in the wider business model, over and above the actual device sales, including call centre operations and support services and third party partnerships."

1. Why is FCL purchasing if Tier 1s are funding it? Why bother with the middle man?
2. Distribution is predominantly the Tier 1s too, so again why is FCL here?
3. Looks like the answer to that question is that they will be providing call centre ops, support, and 3rd party partnership services. Are these referring to the ongoing monitoring of health? I hope not because FCL doesn't appear qualified to be GMV's primary provider of that service.

So I'm still trying to understand why FCL is here.

Hypothesis 1 - They are just providing a fulfillment service to GMV. They will import/hold all the product and then wholesale distribute out to the Tier 1s. Makes sense but why FCL? Why not Amazon which can probably do it a lot cheaper?

Hypothesis 2 - They have a powerful network of connections and relationships with the Tier 1s. Possible but considering the poor financial condition of the parent company, I somehow doubt this.

Hypothesis 3 - They are providing basic level 1 support in regards to product purchase and returns. Makes sense for GMV to outsource this but again, why FCL and not Amazon?

Having said all that, my primary concern had been where the funding would come from. I don't think the language is clear enough to absolutely confirm it will be from Tier 1 partners but it does make more sense than suggesting it would come from FCL.

My question about FCL's role in all of this is less important as long as someone pays up.

I'm happier than I was this morning to continue holding so thank you for pointing out that funding is most likely coming from Tier 1s.