RE: Massive buy sign12 Apr 2021 14:59
Vas - I think it is impossible to have a clear idea of the number of outlets by the end of April, its moving/changing too fast for them at this stage, and while I would dearly love to know more information regarding the number of outlets and the sales figures per store, I am more than happy waiting another couple of months for them to build a stronger position and ultimately get a monster RNS out there.
One thing i would say, is that i would half your profit per store to be conservative. They have told us before that they were selling 4 - 5 products per store during their trail phase, and we know each product makes $2.5 profit, therefore, a nice round $10 per store.
One other thing to think about, is why would they require access the $35m Financing Agreement with LDA Capital, and was it $12 or $15m drawdown committed in the first year.
If we were organically growing in the USA alone at between 500 and 1000 store per month (at least $150,000 increase in profits each and every month) why would we need access to this money?
I have a feeling that we will be getting some pretty big monster RNS's concerning product roll out in UK, Europe and who knows, even Asia. If that is the case, I can quite easily see why we would need access to large amounts of capital very quickly.