RE:RE:RE:RE:TO THE CONGO If any one has a link for the Q4/2015 call, the Q & A portion could they provide it please.I think this was the one with the technical glitch. There was some discussion I recall in regards to what the Blizz is talking about. I would like to re-read it. I remember Todd describing it as factoring. I also recall on one of the calls him mentioning the DRC could only pay at a rate of 10 million monthly.
What Blizz is saying is at least interesting or thought provoking. It’s also important to remember this is Airmaps contract, not Intermaps. So while it sounds good to go direct it isn’t really possible(I don’t think). Airmap holds the cards in this regard. Maybe Airmap has the financing. I can’t prove they don’t . Lots of variables I guess. They are also a partner they will likely want in the future I would assume. If this works out they can rinse and reapeat in Africa.
Below is some discussion about the financing process from some of the CC’s. I think most of the discussion about this was on the Q4 call Q&A. When they were still confident in a Q2 close.
Q3/2015
Mark Gomes
Okay. And I'll ask one more and then give others a chance. Where are you in terms of, if you look at the first deal that that country's ability to finance a large upfront payment, if it’s struck there on the row there?
Todd Oseth
So actually, it's not that large of payment when it comes to a government that we are talking about and remember everything goes through project financing organizations. So there are banks involved. So we, Intermap never receive any money directly from the government. We end up going through our prime contractor who is project financed through some very large banks around the world.
Mark Gomes
Okay. So is that to say that the financing is in place?
Todd Oseth
We haven't announced anything in the security of the whole thing, but we don't believe that there will be any issue in financing this project.
Todd Oseth
Great. Well, thank you for the questions. In closing, I just wanted to reiterate that the SDI project that we won in June is moving forward just fine. This win has helped expand our pipeline into other countries and being the first SDI implementation allows us to pave the way for additional business, because we’ll know how to finance and deliver.
The prime contractor has helped immensely by establishing a mechanism for large geospatial projects to be financed. Lastly, as the SDI is implemented, the custom applications will be able to be used for additional countries, in essence creating a suite of products that are needed by many nation states. We’re excited for our future and the returns that it will bring to our shareholders. Thank you again for your patience, we look forward to future announcements very soon. Have a great day.
Q1/2016
George Melas
Okay. And how do you decide to go direct, so you feel like if the project is funded directly by the government, you have the capability of going direct?
Todd Oseth
That’s correct. And basically what happens is that, it all has to do with the ability to get a certain amount of funds passed in the single year. There is typically a mismatch between our spend and what the government has available. So, that’s why the project financing comes in. The total number is achievable, but it may take an extra year or two of the government to put in instead of paying for it directly upfront. So, it depends upon as acquisition associated with it whether it’s software and just audit services and then focusing on the answers.