So what does the future hold for TZScenario 1: MM has...

So what does the future hold for TZ

Scenario 1:

MM has highlighted a likely scenario whereby QVT calls in the loan rendering TZ insolvent and as the first creditor, takes over the ownership of the company. One presumes that QVT would then inject further funding, and most likely some expertise, to crank up TZ’s effort and finally make it a profitable entity. QVT would then look at selling the business at many multiples of its current value. Typical hedge fund play. Question is, what's in it for QVT to stick around as a long suffering shareholder? Given the current boards lack of performance, why are QVT so keen to retain their services? What does Paul Casey bring to the board?

Scenario 2:

TZ has not had a good track record of delivering on it's business plans. IXP, Singpost and some minor PAD sales, but TZ is still running at a loss and it’s hard to see it turning around any time soon. One would think that TZ’s resources are well stretched with Singpost expansion and the rollout of ADAM. If TZ won any other contracts, it would need to expand it’s current workforce to meet demand. PAD appears to be the lifeline for TZ, however it takes a lot of capital and time to get product into the market. Neither of which TZ has much off. So where to from here? Capital raising at sub 10c? Are QVT happy with this and see value in the current board plodding along putting in a dozen or so lockers a year with a bit of IXP on the side?

It’s clear which scenario makes sense for QVT.

What are other shareholders thoughts about the future? I’m not trying to start an argument here, just looking for some other thoughts around TZ’s future.

As a long term shareholder, the only shining light I see is with ADAM. If TZ can rollout a substantial number of lockers and start to generate throughput and reoccurring revenue, then the lockers are like poker machines. Cash cows.