GREY:LFDEF - Post by User
Post by
Links68on Mar 17, 2017 4:29pm
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Post# 25995651
Comment on Government Funding
Comment on Government FundingThe government doesn't just hand money over to anybody... wait a second... let me rephrase that... they won't just hand over money to a for profit, public company without the appropriate due diligence. Prior to getting the government to agree to this $17.6M funding arrangement UR would have to have proven beyond any doubt that they have a viable business plan for OptiSar. They would have had to convince the Liberals that enough OptiSar contracts would be signed to get the project into the build phase within the current timelines. They may have even had to get SSTL to provide their commentary on their ability to produce the satellites on time and on budget.
I've been involved with a few organizations in requesting money from the government, in much smaller amounts than $17.6M, to know the type of support required to show this money is going to be used appropriately and, in this case, get paid back on schedule.
The government funding agreement should provide more support towards the idea that UR will make OptiSar a successful endeavor. It gives me comfort to know another set of eyes has put URs organization under a microscope and determined they are a good investment.
I would expect the Kazakhstan contract to be announced within 45 days and another prior to Q1 earnings release.
If we get back to $1.50 or below after the Q4 FY 16 release I will be adding for sure. If we don't get back there, I'll be happy to see my account grow into the second half of '17 with what i currently hold.
GLTAL!