****ney rebel (richard crow)...10 Jan 2025 18:20
Has just bought in to FTC, which will mean his legions of followers will pile in soon. I really hope this company doesn't get hyped beyond belief. I maintain a current fair value is 120p based on UK tech valuations and the very strong growth. If Space X make their second order and exercise their 5% warrants, FTC will go nuts and way beyond 120p. If they do the trache 2 and take the second 5%....! For those that don't know, here are the details of the 2024 Space X deal:
- **Initial Agreement**: In April 2024, Filtronic announced a strategic partnership with SpaceX, which includes the supply of E-band Solid State Power Amplifiers (SSPA) for SpaceX's Starlink constellation. This initial agreement was valued at $19.7 million (£15.8 million) for the supply of modules scheduled for delivery in FY2025, with expectations of further orders thereafter to support the ongoing deployment of Starlink satellites.
- **Warrants**: As part of the deal, Filtronic issued around 21.7 million warrants to SpaceX across two tranches, enabling SpaceX to subscribe for up to 10% of Filtronic's existing share capital. This arrangement gives SpaceX an option to invest further in Filtronic based on the fulfillment of specific order milestones.
- **Subsequent Orders**: Following the initial agreement, Filtronic received additional orders from SpaceX, including a $9 million order in July 2024 for more E-band SSPA modules, further strengthening their strategic partnership. This order was expected to be fulfilled within the same financial year. Another order worth £6.4 million was confirmed by August 2024, highlighting the ongoing collaboration and SpaceX's commitment to using Filtronic's technology for enhancing its satellite communications infrastructure.
Filtronic issued a total of 21,712,109 warrants to SpaceX, split into two tranches:
- **Tranche 1**: This tranche includes warrants for up to 10,856,055 shares, which is up to 5% of Filtronic's existing share capital. These warrants vest based on the receipt of purchase orders for E-band SSPA modules. They will fully vest once SpaceX places a minimum of $37 million (£30 million) in orders.
- **Tranche 2**: The second tranche includes another 10,856,054 warrants, also representing up to 5% of Filtronic's shares. This tranche vests on a similar model but is linked to orders for SSPA modules at other operational frequency bands. Like the first tranche, full vesting occurs with orders reaching approximately $60 million (£48 million) in total from both tranches.
Both sets of warrants have an exercise price of 33 pence, based on the closing mid-market price of Filtronic's shares on April 23, 2024. The warrants are scheduled to expire five years from the contract signing date, or earlier if minimum order volumes are not met by SpaceX. Vested warrants can be exercised in whole or in part, with a minimum exercise amount of 500,000 warrants.
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