RE: Madness12 May 2023 03:35
Key fundamental questions
1. Gross proceeds of 7 to 8 Million, after fees, probably net proceeds of 6.5 to 7.5 M. Probably need to repay the HSBC debt which is under waiver for breach in covenants, around 4 M. Plus the Convertibles due in January 2.8 M. In total, 6.8 M for debt restructuring? So nothing left for growth R&D, ,… anyways if the figures above are not right, serious disclosing about the debt restructuring is critical to approve the capital increase.
2. There will be need for another capital raising in early 2024.
3. If KMK is the only independent CZT detector manufacturer, how is possible their sales are ridiculous when the last 2 year nuclear CT / SPECT etc. had huge growth globally. So only GE and Cannon sell those devices? So who are those tier 1 and tier 2 OEMs who signed with KMK? If they are tier 1 and 2 they should have sold lots of devices in 2022, who was the CZT detector supplier? Something does not add up, they should be serious disclosure above these contracts as well and who are the OEMs.
4. Anyways, there are many companies globally developing same CZT detector solutions in places where there is very mature supply chains and much lower manufacturing costs … How KMK is going to compete with them in 2 years time?