RE:RE:RE:RE:RE:RE:RE:RE:O.K, Look, I can understand some of the people'sCommunication of efforts to grow business does not need to be constant I agree, however there should have been at least a conference call after the release. This would give any analysts and individual investors a chance to ask informed questions or at the very least just plain listen to others questions and SEV's answers.
This statement is taken from the MD&A
"The Company is dependent on growth in revenue in the next year to fund future operations. Should expected revenues not materialize, the Company may require further sale of debt or equity securities, additional bank financing or other sources of funds in order to meet its obligations. See the section “Risk Factors” section of the Company’s most recent Annual Information Form."
Perhaps this may be standard boiler plate for MD&A's. However investors deserve to know what SEV is doing to ensure these revenues do materialize. As more dilution will turn this thing into nothing more than the equivalent of a speculative junior mining stock.
Basically SEV had 9 million left after they paid off the bank loan. They owe 7% per annum on the 15 million financing which is about 1 million per year. Using FY 17 numbers, they had expenses of 17 million which resulted in about an 11 million net loss. Using the same ratios SEV will need about 22 million in revenue just to keep the lights on without diluting even more. It was already stated that Q1 VR revenue will be lighter than Q4 and Data Centre Revenue will not materialize until Q3 or Q4. SEV needs one heck of a back ended FY.
This whole thing has been smoke and mirrors over the last year to two years. At this point any buyout will be at a much lower price than anyone here has hoped for. Analysts are lowering target prices or just plain dropping coverage. Even Canaccord didn’t give a revenue expectation in their update the other day.
Ya I think the BOD owes it to investors at this point to communicate. It is time for Raouf to go.
To everyone on this board, please take the time to read the MD&A.