Hi all, I think the CR is strategically intelligent and the most...

Hi all,

I think the CR is strategically intelligent and the most appropriate avenue to facilitate the growth NTC sees ahead.

Just look at the last couple of balance sheets...NTC has been trying to expand to meet demand on a very limited capital base. $3.2m cash last June and $1.96m at Dec with an increase in borrowings of about $8.4m during the period. They have been running a very tight ship with very limited capital for growth projects. All of the $100m++ sized potential contracts that could lie ahead for NTC are being predicated on a balance sheet of only $15.66m of Net Tangible assets as at Dec.

Any major US or other international Comms coy looking to do any reasonable contracts with NTC will have all looked at the balance sheet and found it severely wanting and really (and correctly) questioned NTC's capacity to deliver. I would say it would be the number 1 reason for NTC to miss out on larger contracts.

So in a surgically brilliant move, they are increasing NTA by 300-400% for a 15% dilution of equity and opened up a large percentage of meaningful contracts.

Simply put, they could never play a meaningful game with their current balance sheet. With $50-60m, they sure can.

I'm happy they have the chance now lets see what they can do with it.

Cheers,