I think if Covata comes out with a good explanation on Monday...

I think if Covata comes out with a good explanation on Monday why they went to the market for more money now and they hit the target of completing the UK Govt G-Cloud FCOS deal in June, then I personally thik this may the last time we see the share price in the 20 cent range ... if FCOs starts deliverying from August after the new G-Cloud arrangements come into effect, then maybe it will be the last of the 30 cent range as well. Then there is the other UK Govt G-Cloud tender that has been won and to which Covata is a part of that we don't know anything about ... so maybe it might be the end of the 40 cent range as well in the not too distant future.

Why do I think that? Here is a snippert from the 11 May announcement:

"It is anticipated that this partnership, which will see Safe Share delivered over FCOS trusted infrastructure, will accelerate the conversion of the current government pipeline consisting of more than 250,000 potential end users. "

If this is an enterprise agreement, then maybe they are about to agree a minimum of 250,00 end users as part of an enterprise agreement. As per previous Covata announcements, this means the client start paying this minimum seat level as soon as the effective date whether they use it or not. Their announcement also mentions it is in UK pounds at a rate between 6 to 8 pounds per seat per month. It will depend on the final end-to-end solution how this amount is split up between the different partners (eg. NSCglobal maybe involved for support etc).

As hinted in their announcement, it is likely to be much better than the net A$3 per seat per annum to Covata. Even at that rate under an enterprise agreement, this would mean 250,000 x A$3 = A$750,000 per month or A$900,000,000 (A$9M) per year as a minimun. Now that is something to get excited about isn't it?

I just hope the news on Monday points positively in this direction. Good luck all investors .... go away Instos unless you are willing to support and hold and day traders!!