I really wanted some good news but we get this.
NET is getting A$16,000 per month from 386 corporate clients. (Or was that RMB80,000 a typo that should have been RMB80,000,000?) If not a typo, that's an average of just $41.45 per client! My teenage daughter pays more to Telstra for her mobile phone plan, let alone for "world-leading, cutting edge, VIN security software". At this rate, NET is going to have to sell the technology to every single man, woman and child in Wuxi for it to make any money.
This RMB80k is "accruing" which presumably means it hasn't actually been paid yet.
NET wants another cap raising of US$3.0m. At current SP this looks like another dilution by around 160,000,000 shares. Great, just what we needed.
Which leaves me wondering why the need for another cap raise if "NET has in place a loan facility with QMAC sufficient to provide Netlinkz with funding to meet its operational and business needs in the medium term"? Is the loan facility insufficient, or are there covenants around the loan limiting its drawdown, or is NET unable to service the loan if more is borrowed?
Netlinkz continues to anticipate (note the "continues to anticipate", not "is certain of ") receiving licensing income in the 2017/18 financial year from sales agreements with business customers of China Telecom Wuxi. How much income are they anticipating here? They must have done the sums, or is all too airy fairy?
After all this, is it any surprise that Netlinkz expects to continue to have negative operating cash flows for the time being? BTW, how long is for the time being - months? years?
And of course, we couldn't not have the usual "Netlinkz is continuing to undergo strategic restructuring".
Brett64, please tell me this is all fine and the light is clear at the end of the tunnel.
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