Oposura funding possibilities, page-7

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Mossberg

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10/04/18

14:12

Post #: 32348563
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“...AZS has always run very cost efficiently“

Originally posted by dolcevita ↑

When researching more on a stock I hold in another sector (medical technologies) I realised their strategy for turning the company around is potentially relevant to AZS.

They had a consolidation. Reigned in costs and developed a targeted business plan. (AZS has always run very cost efficiently, but they have sought and gained new projects in targetted minerals, and put other projects on the back burner. This is agility.)

That other company* has product to market, but they needed to get more clever in how they marketed the product and cauterise spending. They cut out funding research on research for a product that was too expensive and are seeking partners for that.
They also cut out communication by phone. Anyone who wants to deal with them has to email.

What could be similar?

Even though the company is in the early stages of maturing, they were able to prove the demand for the product would continue to increase such that revenue was guaranteed. As a result they managed to get a $10mil credit facility at a low rate. The second tranche of which is under 10%.

This means they are in control of their own destiny. No JV involved. NO DILUTION.

What really interested me is that they played off lenders against eachother to get a great deal.

What if AZS were able to something similar with Oposura? Appointing a Project Manager seems to me to show a fair amount of confidence.

What if we have a metal that is in high demand, is low capex and low cost to produce.... and can do the same??

AZS don't have product to market. But what if AZS could prove it could do presales? Then they can seek funding based on the detailed business plan, based on the feasibility of presales, but not actually doing it. Because presales locks you into a price and limits your upside in a rising market.

(*FWIW the company I'm talking about is AHZ, see their AGM video from 2017 starting at around 9.00 mins. It doesn't matter that they are in a different sector, the business and financing principles are what's relevant here).

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Last edited by Mossberg: 10/04/18

AZS Price at posting: 30.0¢ Sentiment: Buy Disclosure: Held
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Oposura funding possibilities, page-7

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