This SAS venture is turning out to be a monster cost over run mainly due to all the related entity snouts in the trough as with most penny stocks that go belly up. Sure, with massive gifts of money the company may be able to get it up but it is going to be expensive and I really doubt the estimated revenue is way over the top by around ten times if I compare to the revenues of Iridium. Here is a story, be it fact or fiction and if you get some insight from it that is a good thing. Imagine a group of people colluding together to make some money, one group is pushing a satellite project using mainly COTS commercial off the shelf technology to anyone that is willing to invest, they have some coatings and an estimated projection of revenue. They take this to the UK in the hopes of attracting European venture capital, nothing happens and the project cannot attain funding. Now we we have a mining company, it’s got no real assets but it can be used as a vehicle for a back foot tech venture to attract non sophistated money to make all participants a lot of money. The port of last call for any venture is pink slips and the good old reliable mining shell segment of the asx. The satellite crew are put in contact with the project seeking mining shell people either directly or via a deal maker out for some dollars, anyway the parties meet up and hatch out a plan. This is the beauty of an asx company and that is that you can have every intention of really making something happen or you can have every intention to milk as much for yourself along the way or you can truly be ive your own bs with ongoing delusions of grandeur and in the scheme of things the deal goes ahead and the paid brokers reports are pushed out and the money comes in. We now have a business. Now we can get directors fees, paid travel, cars, hotels, meals, payments for consulting, payments to directors entities or related parties and so on. But the company must do some real work or the money will stop, so a couple of million from the pot is sacrificed to launch a few COTS satellites to prove to the investors that in can be done. Of course it can be done, there are many such satellites already up there doing much the same thing. To carry on about the first nano satellite doing this or that is a play on words as it has been done with cubesats already. The idea is to make as many announcements as possible on anything that can be announced, notice these binding mou announcements are only an instrument to say that we will look at talking in the future and most likely subject to many escape causes, I would like to read one. So the story goes on with all the investors perceiving it’s all going to plan and they get buttered up for another capital raise. As long as the company directors show intent to build a business then all is good, competency or business skills are not part of it, if it all goes belly up due to corporate incompetence then tough luck, if it cannot get finance then tough luck, if it’s all a milking scam then tough luck, but if it was not successful as a start up in the UK and had to resort to the platform of the tech wrecks then I would be worried as hell having my hard earned being spun off into related entity companies. The trouble is that most of these stocks have a great sounding story but investors are easily suckered in just as the previous new economy catch call that decimated the stock market in previous times. When mining is not booming these penny dreadful companies change stripes to become another animal, when tech falls down they revert back to a mining company. Good luck punters, anyway the above has been written from my wild imagination, none of it is true imho, and it can never be proved to contain any fact or even fiction. Believe what you want.
Expand
