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Delighted to see the market likes the deal! Future prospects are good!! GLA
Dan I am a LTH and a big fan of the tech and future prospects - simply questioning the level of deal required to trigger the $1.0m equity release which is part of the August deal (there are 2 x $1.0m earn outs as part of the deal if you look back at the structure from the August RNS). There was no figure attached at that time to deal size but I had assumed it would need to be bigger than $1.5m over 5 years.
On the plus side, there are only 2 equity earn outs so let’s hurry up and get another deal to end this potential issue and then we can reach fir the stars hopefully!
The up-front cost would’ve been higher without the earn-outs. This way, they remained motivated to chase every deals.
Let’s get the customers, keep the foot firmly wedged in the door and cross sell the f**k out of them with our other products!
We now have the first US customer - that’s always the hardest to crack!
Lionheart,
Additional shares are not a reflection on this specific deal but a reflection on the acquisition of coastal genomics. This share giveaway was part of that deal. Yourgene is looking at the bigger picture here, this new contract was a mere trigger in achieving the milestone for the shares to be given.
Imo it's better to have constructed a deal this way rather than issuing the shares prior to any new contracts being won and solely when coastal genomics was acquired.
This deal isn't about the money side. As I said earlier, you can think of it as a loss leader. It's a new piece of tech and we are trying to get it out out there. This is how you do that. Amazon didnt make a Bean for years while it was building up the business and investing for the future.
The first deal was always going to be something like this. But its a statement. If it gives the buyer a competitive advantage as was said then others will want it.
The share deal I presume won't be for every contract win - so this will be balanced against a larger revenue intake over time.
Anway - on a positive note - Stockopedia has us down as one of their stock pick so not too much whinging or we'll put off our new guests.
Come on in - the door's open - help yourself to a sausage roll.
Have a good week all the regulars and see you with pockets full of cash at the end.
Dan
Not disagreeing with all the ‘foot in the door’ opinions, and this could be good BUT surely there has to be something wrong when the deal that is done to trigger £800,000 worth of shares is only worth a tiny bit more than that. In addition the shares are only protected for 12 months whereas it will take 4 years to achieve the revenue to pay for them. Apart from the potential, in what world is that a good deal?? Let’s hope the US markets really takes off because otherwise this deal does not justify the share earn out. GLA
Positive signs indeed. An entry into the US market is how this RNS should be looked at. The potential of the US market is huge and we should all look forward to Yourgene gaining exposure/market share in the near future. This is just the start of many more deals to come which will be much more significant in value.
It's kinda a loss leader. As said previously a foot in the door.
We are not going to crack the American Market in a day, and have to start somewhere. I suspect this will be the first of many such deals.
Not big numbers, but very good to see the uptake in the US. Should be more to follow soon!
Baby steeps. Hopefully first of many such deals.
Still waiting on anything Iona Nx related.
5m shares @ say 0.16p = £800,000 now and $1.5m revenue over 5 years @ say $1.35/£ = £1.11m or £222,000 pa so it will take 3.5 years just to get the share value back. I don’t call that any kind of deal - in fact, it’s garbage unless the future oncology opportunities really take off.
Less than the revenue generation of my local Boots, plus further dilution of 5million shares.
The US wasn’t colonised overnight, so have to remain optimistic.
Foot.
Need glasses !!
worth an estimated $1.5m over five years. Not massive, but it all helps. Other food in the door.