I'd be questioning those 2,500 (US$93.5 mil) orders very very seriously in light of all that has happened. Especially that now AT&T has 'pulled out'. The announcements has been very confusing - always has been. No credibility left. WHO ordered those 2,500 units? Why would they order those 2,500 units at a cost of US$37,400 each without even putting them to test ? Did they ordered it just from seeing it in a road show ? Numerous inaccuracies is the theme.
I must admit when the Trading Halt mentioned "update on customers" I thought maybe XTV did really pulled it through. 99% others here thought it will be big too! Maybe they finally snagged Walmart or several majors. I was almost keen to buy in again if that was the case but something didn't quite smelled right.
On another note, has anyone read the term sheet for the $3 mil loan ? What happens if they default on those covenants? Looks very likely for the first one in light of the regressing monthly networks.
That $1.3 mil minimum quarterly revenue by Dec 2016 quarter looks like a tough one seeing that their revenues are actually decreasing.
The $3 mil was to be used for IP monetisation and expansion plans "over the next 3 years". They've gone through one third of it already by now. The covenant also requires 6 months liquidity.
Joe's plan might be to raise money through the cr for the acquisition and pay them off that way. No way they won't default on those terms by simply going the way XTV is going.
XTV Price at posting:
1.2¢ Sentiment: None Disclosure: Not Held
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