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Eddie,
"Even if we had $250m to $280m that’s a whopping amount don’t you agree ?"
Ok, thanks for confirming you made the $300m up?
I'm sure readers aren't fools and would be interested to know from the company what they are actually going to do.
Alphonso court case.
Inventory Payments.
M&A.
Given at fy2020 Dec they stated they are retaining cash for working capital, the recent court case filing against Alphonso, I think they need the cash for inventory payments/working capital.
From their fy accounts:
""Net cash from operating activities of $35.2 million (2019: $45.1 million) mainly due to working capital requirements during record H2 and Q4 2020 performance"
"Although the Company have paid dividends and share buybacks in the past, the Company does not anticipate paying any dividends in the foreseeable future. The Company currently intend to retain future earnings, if any, to finance operations and expand its business. "
https://www.tremorinternational.com/wp-content/uploads/2021/03/TRMR-Final-Results-100321.pd
Perhaps the reasoning given when Sizmek filed for Chapter 11 is a more plausible explanation? ie the way ad tech model works.
The ad tech model works by DSPs/SSPs, partnering with each other. It is usually the case that the company would pay their 'supplier' (other ad tech companies) around 60 days but receive their cut from 'customers' (other ad tech companies) around 90 days. That gap("inventory payments") has to be covered from their own cash or they setup credit facilities.
"Brands and agencies often pay DSPs on 90-day or even 120-day cycles. But DSPs pay SSPs between 30 to 60 days."
"DSPs shoulder this burden directly because they constantly owe money to inventory suppliers. The Trade Desk took out a $200 million loan in 2017 to preserve liquidity while it bridges inventory payments. MediaMath has raised more than $600 million, including $225 million last year."
https://adexchanger.com/online-advertising/sizmeks-bankruptcy-is-changing-how-the-supply-side-manages-dsp-debts/
STT1
Aren't we going to make no cash in Q2 ..? plus the option of more ADS to be issued to underwriters.. On top of that?
Have you really been reduced to having to split hairs now Stt1 !?
Even if we had $250m to $280m that’s a whopping amount don’t you agree ?
I remember you were raising concerns a while back about R1 cash levels and made a whole fuss over it ( not to mention the Credit facility that was put in place ) its interesting you have NOT mentioned cash levels for Tremor for a long time !