Summary of investor meeting

Let me just start by saying I was really impressed by the presentation, Meir did a great job addressing most of the issues SH raised. Also what a crowd we had in Melb, it was nice meeting some of you fellow HC SASers!

So to answer some of the most common questions:

Future funding / Financing plans for constellation
- Brett Mitchell addressed the crowd on this, which he confirmed that funding will not be an issue as they already have instos / sophs showing a lot of interests, or like a combination of equity & debt plan. They will consider the best option so shareholders will be looked after and not end up with another massive dilution.

What if launch fails?
- As we all know, we are fully insured by BRIT Global Specialty. So financially it won't be an issue. However, Meir did say that it will take up to 6 months to rebuild 3 diamonds, find another launch opportunity etc.

Virgin Galactic alternatives
- Virgin's first launch is to be expected by end of the year. In case if LauncherOne isn't ready, we will have backup plans. Virgin was never the only launch option that the company has considered and there are a number of other companies that are on the books (ISRO for instance) if things don't go to plan.

Revenue model / Profit margin %
- This has been discussed a number of times but there's only so much that Meir can tell us at this stage. As you all know we will be running on a very low capex model. Interestingly, he drew comparisons to Iridium ($433m rev, EBITDA of $254m), and said that our profit margin will be better than theirs. http://investor.iridium.com/releasedetail.cfm?ReleaseID=1014144  
- He also gave a conservative estimation on how much revenue could possibly be generated, using Iridium's stats. Iridium customer spends an average of $60 per month, now "take away $10, then give them an extra 80% discount is what we will charge them", which is $10 per month. Our target market is 4 billion people, let's be realistic and say we get to 1 million of them, which is 0.25% of the targeted market (this is too conservative!). It then gives us - $10 x 12 months x 1 mil customers = $120m / year, which is almost enough to cover the cost of the entire constellation!

Now to add a few other things that I found interesting:

- Our first wholesale customer, Sat-Space Africa approached us to sign the contract, we didn't reach out to them in the first place, which is a big validation to our tech as they know we can provide them the same service for a much lower cost

- I also asked Meir about the software development team. He said they are a bunch of "very talented and hardworking group that is from our very own company, we own them". The team consists of engineers etc that used to work for Ericsson, all very experienced and good at what they do!

- Capacity of the constellation (raised by @PeterKing). If we do get more than 1mil customers for example, if the satellites will be able to handle. And the answer was yes - they are built to accommodate more than the estimated amount as they would. So unless ALL 3 billion people decide to use SAS's network (which we will all be millionaires by then! lol), there shouldn't be any concern with the capacity of service that constellation can provide!

- Once 3 diamonds are up, they will immediately go through frequency testing etc. The whole process will take 6-8weeks, so we will be expecting our first revenue roughly 8 weeks post launch

That's all I can think of on top of my head guys, will have to rush off to work, hope you all have a great week!

Hezz