Mr T25 Sep 2017 15:44
From Astral on advfn
given some of the questions on the thread today, I asked SRT for some clarifications, even though on some points I think it is fairly obvious.
Anyway, here is the reply from Mr Tucker, I have permission to post it.
Mr Tucker's reply:
We can borrow monies as and when we want within an aggregate total of £10m.
Each time we do take a draw down there is a standard loan note document which has a 3 year fixed term.
We only pay interest, calculated monthly, on the total amount we have drawn down.
We can repay the monies as and when we want. If its before the 3 year term end, then we pay a one-off fee of 0.5% on the amount we are repaying. Interest does not continue to be paid on the amount we have repaid. We only pay the interest on the amount we have drawn down.
The reason for doing this is that it provides a financial insurance policy for SRT as we enter a period of multiple projects with governments where payment terms can be variable. It takes away any prospect of a rights issue and is in fact a very flexible finance source.
On the satellites – the principle of maritime domain awareness is ALWAYS the same and not defined by SRT. Non-collaborative (passive) technologies such as radar, CCTV, IR etc are used to detect a vessel and sometimes to also determine size, course and speed. Collaborative (active) technologies such as an AIS transceiver are required to enable the identification a boat. Terrestrial systems see out to around 50nm. Beyond that drones or satellite platforms are needed. Our customers want to determine illegal activity – they do this by fitting their local boats with an identification transceiver and analysing their behaviour. They also feed in passive data to detect vessels that are trying to hide (dark vessels). Thus OCEAN-SAT is the first and ONLY system that has dual passive and active technologies on each satellite to provide truly co-ordinated data – the same principle of coastal surveillance, but now in space.
The AIS technology we will deploy will be well ahead of that used by eE and Orbcomm. The presence of a passive detection technology will be truly unique and unmatchable by eE, Orbcomm, Inmarsat, Iridium etc. The system architecture we will be using will enable direct data delivery to customers, again an innovation that will minimise system latency.
We have the customers for the data and typically each vessel we equip should be worth between $50 and $100 per year in data charges.
As with a new transceiver development, a OCEAN-SAT will take 2 years to develop and start generating revenues. But once operational will generate recurring revenues from data sales for 10 years or more.
The whole thing, including SRT as an investment proposition, is of course premised on whether anyone believes that monitoring the maritime domain is of importance to anyone
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