Morning Folks,
As I mentioned yesterday the presentation in Sydney was incredible. A lot of in depth questions were answered and I am more than happy to have a large parcel here as it’s such an easy hold.
The team were well presented very credentialed and personable people.
I always look for one specific thing in something of a company at this stage in its life and that is the ability of the founder which is 9 times out of 10 the technical guy being able to not only hand the business side over to a commercially minded person but also unconditionally accept it. Adrien has done both IMO and not only is his technical intellect of a very high level but he possesses a high aptitude of commercial thinking as well a very rare thing.
Wolfgang is the man for the job he is a great leader and well- commercially structured man with a clear plan to build a new industry from scratch with the right contacts and relationships.
The stated goals that are public are thought to be high but in fact they are being conservative.
If this does not have a MC of $100- 200 million (SP $1.70-$2.26) near term (3-6 months) I would be shocked.
The following was discussed in no particular order… Lefevre may be able to expand if I miss anything.
- Manufacture of the device itself is a large global player so the increase in demand can be sporadic as it wants to be and they can handle it. The costs to make (only 200 euro) will come down as more orders come in however its already really low which is great.
- The new hire who is an absolute gem to the company come on board quicker than expected and already has very vast contacts in this very area. Wolfgang mentioned that he led them to many leads at the recent trade show and armed with the new revenue model has been a smash hit. They are advancing many discussions quickly and I expect them to be announcing new distributions deals very soon. The Italian deal will remain under the old revenue model.
- Multiple third parties have approached them for the raw analytical data generated in which they have the largest in the world in this field. They will work with these people to monetise this and each day the data gets more and more as additional and current users upload the data. Adrian also caught the attention of the European ministry who asked him to present the data to them. Wolfgang’s expression when this question was asked was very telling as he explained it is worth a HUGE amount to the company and off course is there any recognition in the SP NO. Peter Griffiths will be our main man here and backed it with almost a million of his own money.
- I very much get the feeling that the 140K units over the next 24 months is conservative and if I remember correctly Wolfgang even alluded to that effect when he was explaining the calculation used. The calculation is based of 1% of the population of each country (only Germany Italy and France) then assuming 10% of that figure will utilise the device. Everyone needs to keep in mind the 140K is only based on three countries and much more to come in the short term and the fact that 140 K only is NPAT that will justify a MC multiples of here its mind boggling.
- FDA clearance and clinical results in only 4-5 months’ time from now this is a HUGE event and will automatically open the north American market which is the largest. Reimbursement code to follow in lock step. Everyone has to remember that they are currently assessing against the same criteria as the European CE used and it’s not a matter of IF it passes rather it’s simply a formality now and the US just naturally are wanting their own data for the regulatory body. FDA clearance is as good as done. Adrian only just had contact with the Frederick Carrick institute very recently and it’s all ready to go and on track for on time or early results amazing really. We are very lucky to have such a smooth ride and be looked after from the number one neuroscience institution in the US. No companies I can recall have achieved what NTI have and they making it look like a walk in the park. TGA approval for Australia is also expected 3Q 2017. The reason why this is so easy for them is because of the people they have utilised to undertake their regulatory process through are regarded well and are a listed name to get things fast tracked in all jurisdictions around the world.
- The launch of Mente Pro will provide further boost to adoption as this is at the request of doctors and health professional to be involved in the process which in turn has synergies for the uptake for the product.
There is more but that is the main body of our meeting and I will write round 2 when I’m ready.
End conclusion is this……. The current SP is
GIFT STATUS no other currently listed small cap or one’s I have seen in the past have had this much advancement with regulatory status CE/FDA etc at this stage of listing nor have they had the near-term revenue locked in and near term probable revenue. They are creating a new market so it’s even better then disruption.
BIG FEW MONTHS AHEAD
Current EV only $33 million unbelieve
They have the cash to do so….
This will be a monster
Cheers bonkers
(20min delay)