RE:RE:RE:RE:RE:Understanding the Cameroon contract Here's the original NR. Yes, it is very ambiguous in many respects when it comes to defining what the gross revenues really means and what the $2MM (once fully operational) means, and what the options for extra sites really means in terms of that $20MM but I think what is clear is:
* the instal rate is a prolonged process and has upfront costs which NUR is funding from Cad project income to some extent
*NUR has lots of subcontracting and other set-up and work-related costs that come out of these gross revenues
* the local entity gets its costs covered and with some guaranteed minimum from Orange to operate the services
*once up and running (what exactly that means I don't know but might presume when all 122 initial sites are in effect) they, NUR, appear to saying they expect ongoing revenues of $2MM and the EBITDA forecast (even at 50%) does not herald a large bottom line impact but we have no way of really knowing.
"- NuRAN has entered into an Network as a Service (NAAS ) contract with Orange Cameroun SA providing for gross revenues of up to $20M CAD over the term of the agreement and in connection with the agreement:
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- The contract is expected to commence in the current quarter and has a term of 10 years.
- Once fully operational, revenue is expected to be over $2M CAD per year with expected EBITDA of over 50%.
- Financing for the majority of the project's capital expenditure is being finalized with a Cameroonian Bank.
- The agreement features a revenue sharing structure including a minimum guaranteed monthly fee per site which covers the operating costs of the local operating company which is 100% subsidiary of Nuran. The structure is currently being executed.
- During the first year of the contract (Phase 1), the Company expects to deploy up to 122 sites in rural locations previously lacking mobile coverage. The agreement with Orange includes an option to add up to 150 additional sites in Year 2 and Year 3 of the contract."